In February, the USDA released its agricultural outlook for sugar for 2019/20. The report indicated that 2019/20 supplies are down slightly from the previous period. Production is planned to increase
Beet sugar production is planned to increase slightly (~8,000 acres in 2019/20).
Cane sugar production is also projected to increase overall. Florida projection has and will continue to increase annually. Louisiana is projected to decline slightly but remains healthy overall. Texas production is recovering and improving over the past few years.
Sugar imports are projected to be on par with 2018/19 and exports are targeted to increase slightly.
Sugar Prices are Rebounding Slightly
Sugar prices hit a historical low in 2018, closing the year at $0.1202 U.S. dollars per pound. Prices had not been that low since 2008. Prices are inching up in 2019 with a 0.17% change in Q1.
Market analysts believe this may be a sweet year for sugar. With futures prices hitting a multi-year low in late 2018 and an attractive anticipated demand, traders are hoping for a meaningful increase in sugar prices in the coming months.
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