NY. The United States Government drastically reduced its forecast for the volume of Mexican sugar that the country will import in the 2023-2024 season, which runs from October to September, according to a monthly report from the Department of Agriculture (USDA) published this Thursday.
The United States now expects to import only 499 thousand short tons (ST) of sugar from Mexico, down from a forecast of 666 thousand ST it calculated in March.
Mexico has had two years of small sugar cane crops that reduced the amount it can provide to the United States under a bilateral trade agreement.
The USDA reduced its forecast for Mexico’s sugar production in the 2023-2024 cycle to 4.57 million metric tons from 4.74 million forecast in March and 5.22 million registered in the 2022-2023 campaign.
The USDA change also comes amid complaints from the U.S. sugar industry that Mexico was exporting sugar in excess of its surplus, which is the amount left after accounting for local production and use.
The USDA raised its estimate on US sugar imports that will pay the highest tariff to 855 thousand ST from 715 thousand ST in March, meaning that more of the country’s sugar supply will have higher prices.
The level of sugar supply in the United States changed little, with a stock-to-use ratio of 13.5 percent.
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– 2024-04-19 16:25:52
