Mexican sugar exports to the U.S. would drop 35.8%

Mexican sugar exports to the U.S. would drop 35.8%

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MEXICO –  Mexican sugar exports to the United States would register a year-on-year fall of 35.8% in the next season that begins in October, to reach 760,000 tons, projected the Department of Agriculture (USDA).

Such volume would be the lowest since the 2009-2010 cycle, when Mexican exports to the same destination amounted to 732,000 tons.

Considering shipments worldwide, these foreign sales of Mexican sugar would reach a total of 1,502,000 tons in the 2020-2021 cycle, an increase of 22.9% at an annual rate. Sugar prices in the United States are above world market levels since the early 1980s.

Situations of excess supply are controlled with warehousing and are mitigated by the Flexibility Program in the Use of Raw Materials, which helps divert sugar from human consumption to ethanol production. In the current season, 2019-2020, Mexico exported 1,183,000 tons of sugar to the U.S., an increase of 38.2%.

Source: El Economista