The US Agriculture Department (USDA) on Thursday said the combination of reduced sugar supply and increased demand in Mexico will make less of the sweetener available for export to the United States in 2017/18 than previously expected. Sugar exports from Mexico to the United States were estimated at 1.45 million tonnes in the 2017/18 marketing year, down 81,044 tonnes from last month's estimate.
Imports of sugar from Mexico were pegged at 1.09 million tonnes in 2016/17. In the United States, 2017/18 beginning stocks were pegged at 1.8 million short tons, up from an October estimate of 1.7 million short tons but down from 2.05 million short tons in 2016/17, the USDA said in its monthly supply/demand report.
This came after sugar deliveries in 2016/17 were lower than expected, likely due to hurricane-related disruptions that were stronger than expected, the USDA said. The report also showed the closely watched stocks-to-use ratio stood at 14.1 in 2017/18, up from 13.3 last month, and down from 14.8 in the previous marketing year.
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