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Includes details of projections, context on sugar supplies
NEW YORK, Oct 12 (Reuters) – The U.S. Department of Agriculture (USDA) on Wednesday raised its outlook for sugar supplies in the United States in the 2022/23 season, estimating higher imports and slightly larger local production.
The U.S. government has been trying to increase sugar supplies as consumers such as bakers and candy makers complain about sky-high prices for the sweetener.
In its monthly supply and demand report WASDE, the USDA projected U.S. sugar total supply for the 2022/23 season that started in October at 14.53 million short tonnes (ST), compared to 14.37 million ST seen in September. With that, the stocks-to-use ratio went up to 14.8% from 13.5%. WASDE10
Nearly a third of U.S. sugar use comes from imports, mostly from Mexico and dozens of other countries in the so-called TRQ program of lower import tariffs. But many allocations under TRQ have not been fulfilled as countries fail to ship the sugar.
The USDA extended to December from September the period for shipments from last season’s TRQ to enter the U.S., estimating it at 77,000 ST, and allocated 220,000 ST for the new season.
Total projected imports for the 2022/23 season rose to 3.61 million ST from 3.48 million ST in September.
But there is still a shortfall on the TRQ as countries such as the Philippines moved to block exports to increase domestic supplies, the USDA said.
(Reporting by Marcelo Teixeira; Editing by Alexander Smith)
((marcelo.teixeira@tr.com; +1 646 223 6040; Reuters Messaging: marcelo.teixeira.thomsonreuters.com@reuters.net – https://twitter.com/tx_marcelo))
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