The outlook for U.S. sugar in 2023/24 shows an increase in supply, driven by higher imports that more than offset a slight decline in production.
Key Points,
U.S. sugar supply for 2023/24 increased by 20,086 STRV, reaching 14.702 million STRV, with ending stocks rising to 2.043 million STRV.
2024/25 U.S. sugar supply is projected to increase by 240,006 STRV, driven by higher production and beginning stocks, with ending stocks forecast at 1.985 million STRV.
Sugar imports from Mexico for consumption rose by 50,000 MT, while high fructose corn syrup is projected to account for 26.6% of sweetener consumption.
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U.S. sugar supply for 2023/24 has increased by 20,086 STRV to 14.702 million, primarily due to a rise in imports totaling 69,368 STRV. Beet sugar production saw a decrease of 60,970 STRV, while cane sugar production in Florida increased by 11,689 STRV. This resulted in ending stocks increasing to 2.043 million STRV.
For 2024/25, U.S. sugar supply is forecast to grow by 240,006 STRV, driven by higher beginning stocks and an increase in sugar production. Beet sugar production is projected at 5.363 million STRV, supported by improved sugarbeet yields. Ending stocks are expected to rise to 1.985 million STRV, with a stocks-to-use ratio of 15.87%.
Mexico's 2023/24 sugar supply has risen due to larger imports, which have partially offset a small decrease in production. Imports for consumption increased by 50,000 metric tons (MT), driven by high domestic prices and a favorable exchange rate. However, deliveries for human consumption have declined by 90,000 MT, as lower-priced high fructose corn syrup (HFCS) gains a larger share of the sweetener market, now projected at 26.6%.
The U.S. and Mexico sugar markets are experiencing growth in supplies, driven by a combination of increased imports and production gains. The U.S. market is seeing stronger stockpiles due to lower domestic consumption, while Mexico faces a shift in sweetener preferences as HFCS continues to replace sugar.
Hedgify's platform helps businesses navigate these fluctuating sugar markets by offering tools to lock in prices and manage risks associated with varying supply and demand dynamics.
The information provided in this market insight is for general informational purposes and should not be considered financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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