The US Department of Agriculture (USDA) on Tuesday cut its forecast for sugar supplies in the 2017/18 marketing year, as expectations for lower domestic production offset a higher forecast for high-tier tariff imports. The USDA lowered the closely watched stocks-to-use ratio to 14.7, versus 15.5 last month and 15.1 in the previous marketing year, according to its latest monthly supply-demand forecast.
Beet and cane production will be less than previously forecast, totalling 9.14 million short tons (8.29 million tonnes), the USDA said. That was down from March's outlook of 9.24 million tons. Imports of high-priced sugar, outside of Mexico and other quota programs, will be higher than previously expected, the agency said, citing the fast pace of such shipments so far this year. The USDA projected total imports at 3.472 million short tons, up from last month's forecast of 3.467 million short tons.
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