Tighter Sugar Stocks Outlook

WASHINGTON - Feb 9/07 - SNS -- Sugar stocks will decline more than initially expected over the coming months, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Projected 2006-07 U.S. sugar supply is decreased 156,000 short tons, raw value, from last month, due to lower production and imports.

Production is decreased 17,000 tons, based on processor estimates compiled by the Farm Service Agency.

Imports under the tariff rate quota are decreased 114,000 tons: 100,000 tons from Mexico based on reduced production potential and 14,000 tons from Costa Rica. Imports for re-export are reduced 25,000 tons based on a slower than expected pace to date.

Total sugar use is reduced 50,000 tons, as lower deliveries for domestic food use more than offset higher exports; both changes are based on pace to date.

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