Reduced U.S. Sugar Supply in 2006-07

WASHINGTON - May 12/06 - SNS -- Projected U.S. sugar supply for 2006-07 is 11.5 million short tons, raw value, down from 11.9 million in 2005-06, mainly due to lower assumed imports, more than offsetting higher beginning stocks and production, according to updated supply and demand forecasts by the USDA's World Agricultural Outlook Board.

Production of 8.2 million tons is up about 800,000 tons from 2005-06. Beet sugar production is higher, at 4.7 million tons, while cane sugar is up to 3.53 million tons.

Imports under the sugar tariff rate quota (TRQ) are 1.32 million short tons reflecting the U.S. commitment to the World Trade Organization to import a minimum quantity of raw and refined sugar, minus a shortfall of 50,000 tons, and the Dominican Republic- Central American Free Trade Agreement.

The USDA will establish the actual TRQ level at a later date. Imports under the other programs, mainly for re-export, are 325,000 tons and other non-program imports are 175,000 tons.

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