Sugar Supply Situation Improves

WASHINGTON - Feb 8/08 - SNS -- Sugar stocks continue to improve in the United States this season, resulting in increased ending stocks forecasts, according to the latest outlook from the USDA's World Agricultural Outlook Board.

Projected 2007-08 U.S. sugar supply is decreased 27,000 short tons, raw value, from last month, due to lower production. Production is based on processors' projections compiled by the Farm Service Agency. Demand is lowered 50,000 tons, mainly due to weaker-than-expected first quarter deliveries for domestic food use.

Production of sugarcane for sugar and seed in 2007 is forecast at 30.9 million tons for the United States, of which 29.1 million tons are expected to be for sugar and 1.74 million tons for seed, Total production for sugar and seed is up fractionally from the January forecast and 4% above the 2006 production.

Sugarcane growers intend to harvest 883,500 acres for sugar and seed during the 2007 crop year, unchanged from last month but 2% less than last year. If realized, this will be the smallest area harvested for sugar and seed since 1990. Yield is forecast at 34.9 tons per acre, the same as the last forecast but up 2.0 tons from last year.

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