Official estimates peg October-May imports of Mexican sugar at 596,739 metric tons raw value (MTRV), down 17.5 percent from the 723,704 MTRV imported during the same months of 2017/18. Year-to-date imports are down 19.6 percent from the average of the three market years that followed the signing of the Suspension Agreements between the U.S. and Mexico’s government and sugar industry.
Under the Suspension Agreements, USDA can ask the Department of Commerce (DoC) to authorize an additional quota volume for Mexican sugar. This week, USDA made such a request for a volume of 90,718 MTRV (100,000 STRV) of “low pol” sugar, sugar with a polarity below 99.5.
Mexico’s current sugarcane crop is set to its second largest on record, with output reported at 6.422 million metric tons as of June 22.