The US Department of Agriculture (USDA) on Friday slightly raised its outlook for sugar stocks this year, but lowered its outlook for the 2019/20 crop year.
The USDA slightly raised the closely watched stocks-to-use ratio for 2018/19 to 14.5 from 14.04 last month. The department put the ratio at 10.5 percent for 2019/20 compared with its forecast of 14.52 last month.
In its monthly report, the agency forecast US production in 2019/20 to reach 8.612 million short tons (7.81 million tonnes), compared to the 9.18 million tons the agency forecast last month, with national sugar beet production and cane output in Texas both seen declining.
While US imports from Mexico are seen remaining fairly steady, the USDA slightly reduced its projections for Mexican production in the 2019/20 season.
Mexican sugar production in 2018/19 is forecast to remain steady at 6.426 million tonnes. Mexican production in the 2019/20 season is seen at 5.772 million tonnes, compared to last month's forecast of 6.065 million tonnes.
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