USDA increases beet sugar production estimates
According to the latest WASDE report from the USDA, beet sugar production was increased by 41,049 short tons, raw value mostly on higher production occurring in August and September from the early season 2024 sugar beet crop. Harvest began ahead of schedule in some states including North Dakota and Michigan to avoid any potential frost as fall approaches. Beet harvest in Nebraska, Wyoming, Montana, and Colorado were staggered throughout the first two weeks of September, with pre-pile occurring a few days prior. The early beet harvest in some states will offer new crop sugar before the upcoming marketing year begins on October 1st.
Participants report more pushback on offers for sugar, as the market has softened based on increased supply and slightly weaker demand. The surplus supply continues to be the main driver for pricing. Meantime, sources state that beet sugar may not be delivered to the east coast at cheap enough values to compete with cane prices on the east coast. A lot of buyers are long on inventory from 2024, and players note there is carryover with high tier imports too.
Contracting for 2025 is mixed, with many buyers already covered for the next year. There continues to be downward pressure on sugar prices based on the reports of a higher crop. Also, the world market has dropped, and prices have become competitive with level two tier imports. Participants do not expect substantial increases in sugar prices after raw sugar futures recently hit two-year lows. Market players tell Expana that there has been limited trading of spot loads, and supplies are readily available. Most players state that the market is still adjusting from aggressive commitments that were made throughout the pandemic. However, the sentiment could change as Mexico becomes more active in the market during the final quarter of the year.
