Mexico: Sugar Annual
Mexican sugar prices have stabilized after significantly low levels in January and February. Low international sugar prices and the importation of high fructose corn syrup resulted in an oversupply on the domestic market. Unrest between sugar cane growers and mills has subsided after export commitments restarted. To date, there are remaining supplies of domestic sugar destined for international markets, delayed due to logistical difficulties and low international sugar prices. However, domestic wholesale sugar prices have increased almost 30 percent (standard) and 16 percent (refined) from January to February 2019. Mexican sugar production for marketing year 2019/20 is forecast to be 6.57 million metric tons raw-value (MMT-RV), with exports forecast at 1.9 MMT-RV. However, this will depend greatly on U.S. needs as dictated in the U.S./Mexico Sugar Agreement, which is likely to be reviewed in the beginning of 2020.
