U.S. Sugar Supplies To Rise

WASHINGTON - Aug 12/08 - SNS -- Available supplies of sugar will be higher than initially expected in the United States this season despite a smaller domestic crop, according to the latest forecasts from the USDA's World Agricultural Outlook Board.

Projected 2008-09 U.S. sugar supply is increased 160,000 short tons, raw value, from last month. Carry-in stocks are up 151,000 tons. Production for 2008-09 is lowered 105,000 tons based on processor projections compiled by the Farm Service Agency. Imports are raised 114,000 tons, mostly as a result of the increased tariff rate quota (TRQ) announced on August 6. Total use is unchanged. Ending stocks are projected at 767,000 tons, down from 1.64 million in 2007-08.

For 2007-08, increased sugar production, higher imports, lower exports, and higher domestic use combine to increase ending stocks 151,000 tons. Processor projections for production are up 30,000 tons. Imports under the TRQ are increased 191,000 tons, mostly as a result of the August 6 announcement and increased imports under the re-export program. Exports are decreased 30,000 tons based on a slower-than-expected pace to date. Deliveries are increased 100,000 tons to reflect the recent strong pace of trade.

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