The USDA’s December 2024 sugar market update highlights an increase in U.S. sugar supply driven by higher imports, offset partially by reduced domestic production. Here are the key details shaping the sugar market outlook.
U.S. sugar supply for 2024/25 rises to 14.251 million STRV, driven by a 225,963 STRV increase in imports from Mexico.
Domestic beet sugar production decreases by 50,000 STRV, reducing sugar extraction from molasses.
Mexico’s sugar exports to the U.S. rose by 193,387 MT, offset by reduced exports to other countries.
The 2024/25 U.S. sugar supply is raised by 231,466 short tons, raw value (STRV), to 14.251 million STRV, largely due to an increase in imports. Imports from Mexico rose by 225,963 STRV to 620,925 STRV, aligning with U.S. requirements under the Countervailing Duty Suspension Agreement. High-tier raw sugar imports also increase significantly, up 118,712 STRV to 161,313 STRV. Meanwhile, beet sugar production is reduced by 50,000 STRV due to lower extraction from sugar beet molasses. Ending stocks are revised upward to 1.696 million STRV, resulting in a stocks-to-use ratio of 13.5%.
Re-export imports for 2023/24 are revised higher by 46,032 STRV, reaching 271,521 STRV. Human consumption deliveries from direct consumption imports also increase by an equivalent amount, totaling 12.400 million STRV. This adjustment reflects sustained demand from U.S. consumers.
The 2024/25 Mexico sugar balance remains unchanged overall, with total exports projected at 1.006 million metric tons (MT). However, exports licensed to the U.S. increase by 193,387 MT, offset by a reduction in shipments to non-licensed markets. These adjustments reinforce Mexico’s pivotal role in meeting U.S. sugar demand.
With U.S. sugar imports rising to offset production declines, businesses reliant on sugar face a complex landscape where managing exposure to supply-chain and price fluctuations is crucial.
The information provided in this market insight is for general informational purposes and should not be considered financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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