The U.S. Department of Agriculture (USDA) on Wednesday cut its projection for U.S. sugar stocks-to-use ratio, a key indicator of the supply level, to 11.5% for the 2024/25 season from 11.7% last month as estimates for sugar production in the U.S. fell.
In its monthly supply and demand report, the USDA projected U.S. sugar production at 9.2 million short tonnes (ST) in 2024/25 (Oct-Sept), down from 9.23 million ST in the previous report in May.
The department reported a cut of nearly 32,000 ST on production of cane sugar in Florida, following information from sugarcane processors in the state.
The USDA considers a stocks-to-use ratio of 13.5% as adequate for the supply level in the country, so the government might increase imports to adjust the market to that level in coming months.
The projection for total sugar demand in the U.S. was kept unchanged from May at 12.55 million ST.
Source: Reuters (Reporting by Marcelo Teixeira)