Mexico might be unable to reach its sugar export quota to the U.S., warned Rabobank’s Pablo Sherwell. The country lacks the capacity to produce the raw sugar required, as most production is estandar, which has a polarity (pol) of 99.4 to 99.6. According to the new deal signed earlier this year, 70 percent of Mexico’s total exports to the U.S. are required to be raw—or below 99.2 pol. USDA is currently projecting total exports at 1.5 MMT, bringing the raw requirement to over 1 MMT. To put this in perspective, last year Mexico produced a total of 262,000 MT of raw sugar.
Monthly exports, season-to-date