KANSAS CITY — The U.S. Department of Agriculture said its Commodity Credit Corp. does not plan to use the Feedstock Flexibility Program (F.F.P.) in the third quarter (April-June) of fiscal 2014 to remove sugar from the domestic market.
“The fiscal year 2014 ending stocks-to-use ratio was projected at 13.6 percent in the March 10, 2014, World Agricultural Supply and Demand Estimates report,” the USDA said in its announcement late March 28. “Prices for both U.S. raw and U.S. refined sugar are currently trading above support levels. C.C.C. has therefore determined it will take no action at this time.”
The USDA is required to evaluate the sugar supply and demand situation quarterly to determine whether to use the F.F.P., under which it buys sugar from the market and resells it to bioenergy producers for non-food use.
“USDA will closely monitor stocks, consumption, imports and all sugar market and program variables on an ongoing basis,” the department said.