U.S. Sugar Market Outlook
The CSC Sugar trading desk takes a look at the September WASDE report and offers analysis and guidance for the months ahead.
WASDE Highlights
Increased U.S. production by 240K st.236 beet and 4 cane.
Decreased estimate of Mexico Quota by 813K st.
ZERO change to deliveries, even though the data shows that 2017/2018 deliveries are likely to be flat or lower than 2016/2017.
Ending Stocks to Use set at 13.5 for calculation purposes to set the Mexico Quota.
Mexico is guaranteed a minimum of 50% of the July WASDE estimate of 70% of the Sept WASDE, whichever is higher. Therefore the minimum is currently 827.5k st, or 50% of the July estimate.
Mexico Refined Quota estimated to be 229K MT in 2018/19 vs 345K MT in 2017/18
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