NEW YORK: The US Department of Agriculture (USDA) on Friday cut its projection for sugar stocks-to-use ratio, a key indicator of supply levels, to 10.6% for the 2023/24 season from 11.3% last month as estimates for sugar production in the US fell.

In its monthly supply and demand report, the USDA projected US sugar production at 9.12 million short tonnes (ST) in 2023/24, down from 9.22 million ST in May.

Beet sugar is expected to account for most of the lost production as cold weather delayed planting, with a decline to an estimated 4.95 million ST in 2023/24 from 5.17 million ST in the previous crop.

The stocks-to-use ratio also fell because the US government has yet to announce any additional import licenses under the reduced tariff quota (TRQ).