The U.S. Department of Agriculture (USDA) on Friday slashed its projection of sugar stocks-to-use ratio, a key supply level indicator, to 7.6% for the 2022/23 season from 10.1% seen in May as estimates for sugar production in the United States fell.
It is reported by hellenicshippingnews.
That means that the amount of sugar that will be available in the United States at the end of the 2022/23 (Oct-Sept) season would only be enough for 7.6% of the total demand in the country projected at 12.59 million tonnes.
In its monthly supply and demand report, the USDA projected U.S. sugar production at 8.82 million tonnes in 2022/23, down from 9.04 million tonnes in May.
USDA blamed delays in sugarbeet planting as the main factor behind smaller U.S. sugar output.
«The reduction (in production) is based on late plantings that imply a national sugarbeet yield of 27.88 tonnes/acre, the lowest level since 2014/15 when similar delays in planting occurred», — the agency said.
U.S. farmers had problems with dry weather that delayed planting. Beet sugar production is seen falling to 4.8 million tonnes from 5.15 million tonnes in the previous crop.
With that low level of supplies, which had already increased sugar prices in the country in the previous season, analysts believe the government will likely boost imports in coming months.