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Mexico Sugar Production Lowered; U.S.
Stocks-to-Use Ratio Falls Below 13.5 Percent
In the March 2024 World Agricultural Supply and Demand Estimates (WASDE), the forecast for Mexico’s 2023/24 sugar production is reduced from last month by 128,000 metric tons (MT), actual weight, to a 24-year low of 4.747 million MT as the pace of production continues to lag historically. Consequently, exports to the United States are reduced by 114,000 MT to 570,000, the lowest in 17 years.
The U.S. 2023/24 stocks-to-use ratio is forecast at 13.4 percent, down from last month’s 14.2 percent, on reduced supply. Supply is lowered from last month by 105,000 short tons, raw value (STRV) to 14.416 million as the increases in raw sugar tariff-rate quota (TRQ) imports that USDA announced on March 7 and cane sugar production were offset by reduced imports from Mexico and lower beet sugar production. High-tier tariff sugar imports are maintained at a record 715,000 STRV, overtaking Mexico for the first time as the second largest import source. With use unchanged at 12.715 million STRV, ending stocks are down 105,000 STRV, the same amount as the supply reduction, to 1.701 million.