The U.S. Department of Agriculture has announced its intentions to take appropriate actions to ensure an adequate supply of sugar to the U.S. market.
In recent weeks, prospects for U.S. sugar production have declined significantly due to adverse weather in both sugar beet and sugar cane regions. In the November 2019 World Agricultural Supply and Demand Estimates Report, the U.S. sugar production projection declined by 572,000 short tons raw value from the previous month, while ongoing weather concerns threaten further reductions.
With a 10.5% ending stocks-to-use ratio forecast for fiscal year 2020, the USDA will address options soon in order to stabilize U.S. sugar supplies.
The USDA said it intends to announce between this week and Dec. 10 the quantity, type, and source of additional sugar needed to ensure an adequate supply for the domestic market, avoid forfeitures, and prevent or correct market disruptions.