Modest Dip in Sugar Ending Stocks

WASHINGTON - Nov 9/07 - SNS -- Residual supplies of sugar will be smaller in the United States by the end of the current marketing year than initially thought, according to the latest forecast from the USDA's World Agricultural Outlook Board.

Projected 2007-08 U.S. sugar supply is increased 111,000 short tons, raw value, from last month, mainly due to higher beginning stocks and imports. Production is increased 4,000 tons, based on processors' projections compiled by the Farm Service Agency (FSA). Imports are increased 70,000 tons as improved production prospects in Mexico lead to higher exports to the U.S. market, partially offset by lower tariff rate quota (TRQ) imports. The TRQ shortfall is increased 30,000 tons.

Projected 2007-08 use is increased 130,000 tons, mainly due to an increase of 100,000 tons in domestic deliveries based on trend analysis including the final 2006-07 estimate. Deliveries for re- export products are increased 25,000 tons and for feed 5,000 tons.

For 2006-07, ending stocks are increased 37,000 tons based on final FSA data, which reflect a number of nearly offsetting changes. Given the final stocks estimate, the residual statistical discrepancy between supply and use amounts to negative 121,000 tons of use.

Subscribers can read the full text of the article by Clicking here