The U.S. Department of Agriculture’s Commodity Credit Corp. said late May 30 it had reassigned cane and beet sugar allotments for fiscal 2014.
“C.C.C. has determined that the cane sugar sector is not expected to fill at least 550,000 short tons, raw value, of its assigned maximum limits, and that none of the processors within Florida, Louisiana and Texas require additional limits,” the U.S.D.A. said. “C.C.C. therefore has reassigned an allocation of 29,501 tons to the lone Hawaiian cane processor, with the remaining unused limit for the entire cane sector of 550,000 tons reassigned to estimated imports of raw cane sugar.”
The C.C.C. said it also redistributed unused limits from beet sugar processors to beet sugar processors needing more limits. The remaining unused limit for the entire beet sector was 100,000 tons, which also was reassigned to estimated imports of raw cane sugar.
“Limits reassigned to imports were reflected in the U.S.D.A. World Agricultural Supply and Demand Estimates report and are not expected to increase the overall level of sugar imports to the United States,” the U.S.D.A. said.
The U.S.D.A. also said the C.C.C. had determined it will take no action under the Feedstock Flexibility Program at this time, based on a stocks-to-use ratio of 12.9% in the May 9 WASDE and sugar prices above loan forfeiture levels. The department is required by law to announce F.F.P. plans quarterly.
“U.S.D.A. will closely monitor U.S. sugar stocks, consumption, imports and other sugar market variables,” the U.S.D.A. said. “The department will reconsider additional adjustments to import tariff-rate quotas and domestic marketing allotments later in fiscal year 2014 to ensure an adequate sugar supply for the domestic market and to prevent market disruptions.”
