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Sugar harvest issues require additional imports

Sugar harvest issues require additional imports

Adverse weather in sugar beet and sugarcane regions opens door for additional sugar imports from Mexico.

In recent weeks, prospects for U.S. sugar production have declined significantly due to adverse weather in both sugar beet and sugarcane growing regions. In the U.S. Department of Agriculture's November 2019 "World Agricultural Supply & Demand Estimates Report," the projection for U.S. sugar production declined by 572,000 tons in raw value from the previous month. Meanwhile, ongoing weather concerns threaten further reductions.

Consistent with the U.S. Department of Commerce’s agreement suspending the countervailing duty investigation on sugar from Mexico, USDA notified DOC of an additional need for 100,000 tons of refined sugar in the U.S. market.

Consequently, DOC has increased the quantity of refined sugar permitted to be exported by Mexico by 100,000 tons. This increase in Mexico’s refined sugar export limit will not change the total amount of sugar imported from Mexico, just the mix between refined and other sugar, USDA said.

USDA added that it will continue to monitor the market to assess whether supplies are adequate.

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