NEW YORK: Higher import volumes and increased local production of sugar has elevated the projected level of US sugar supply for the 2024/25 season (Oct-Sept), the US Agriculture Department (USDA) said in a report on Friday.
The USDA increased the projected supply in the domestic market by nearly 250,000 short tons (ST) for a total supply of 14.25 million ST, which will result in a higher stocks-to-use rate of 13.5% from 11.5% estimated in June.
Beet sugar production increased to 5.23 million ST from 5.11 million ST in June, the USDA said, citing a larger harvested area and higher yields following early planting this year.
The department said high-tier imports, subject to the highest tariff on that trade, rose to more than 1 million ST in the previous season, boosting the beginning stocks of the new season (2024/25).
With the changes, the country would likely need less imports in the new season to meet expected demand of 12.55 million ST.
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