The United States will need to import more sugar on top of what the government was allowing because supplies remain tight in the domestic market, industry sources said Thursday. The US Agriculture Department on Wednesday approved an increase in raw sugar imports of 450,000 short tons (408,233 tonnes) because of a supply crunch in the United States, one of the world's biggest markets.
An informal survey of sugar brokers in the US projected that imports of another 400,000 to 500,000 short tons (362,873-453,592 tonnes) would be needed to feed food, confectionery and industrial companies. "I do not think it's enough. But the USDA has to balance what the industry needs and help growers on the price front," one broker said.
USDA said the import allowance was enough for now, but it would take another look at the market come June. "Significant uncertainties about 2012 Mexican imports, domestic refined and raw sugar demand, the early (US) sugar beet crop, and other market factors make it prudent for USDA to not increase imported supplies further at this time," the government agency said.
Comments
Comments are closed.