Source: USDA
Consistent with the Commerce Department’s Agreement Suspending the Countervailing Duty Investigation on Sugar From Mexico (the Agreement), the USDA today notified the Department of Commerce of an additional need for sugar in the U.S. market of 200,000 short tons raw value (STRV) of refined sugar. Consequently, Commerce has increased the quantity of Mexican refined sugar permitted to be exported by 200,000 STRV for the Oct. 1, 2019 through Sept. 30, 2020 period. Commerce previously increased Mexico’s refined sugar export limit by 100,000 STRV, also at the request of USDA, on Nov. 25, 2019. In the same way as the November request, today’s increase in Mexico’s refined sugar export limit will only change the mix between refined and other sugar.
Current market conditions point to a sugar shortage. This action is a further step in ensuring an adequate supply of sugar to the U.S. market, given the terms of the U.S. sugar program and the Agreement Suspending the Countervailing Duty Investigation on Sugar from Mexico.
The USDA will continue to monitor the market to assess whether supplies are adequate.
*Refined sugar of a polarity of 99.2 and above, as produced and measured on a dry basis.