World Perspectives
softs

What to Do With Excess Sugar?

Sugar is a high profile commodity this month. When the April WASDE comes out next week, it will have to factor in some developments in Mexico. The March WASDE showed sugar production in Mexico at 5,890 MMT, with exports to the U.S. at 1,360 MMT (out of 1,370 MMT total exports). But since then, the Mexican Comite Nacional para el Desarrollo Sustentable de la Cana de Azucar (Conadesuca) has upped its estimate of production to 6,247 MMT, which was an increase of 578,682 MT over its initial forecast. The sugar harvest in Mexico is running about 23 percent above the five-year average. Under the integrated market between the U.S. and the North American Free Trade Agreement (NAFTA), this is a very significant shift that next week's WASDE will ha...

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