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Mexico unlikely to meet U.S. sugar import demands in 2017-18 -Rabobank


Reuters

NEW YORK, Dec 7 (Reuters) - Mexico's sugar industry will struggle to meet U.S. import needs during the 2017-18 crop year as the country's mills are ill-equipped to meet requirements of a new trade deal agreed in June, Rabobank said on Thursday.

A U.S.-Mexico sugar pact hammered out earlier this year will force Mexico's mills to reorganize and produce a new type of sugar, Pablo Sherwell, Rabobank's head of Food & Agribusiness Research for North America, said at an industry conference.

Mexico predominantly produces a sugar known as estandar, which is higher quality than the raw sugar.

The U.S. Department of Agriculture (USDA) has forecast U.S. import needs from Mexico at about 1.5 million tonnes, leaving the quota for raws at over 1 million tonnes.

"I think it will be a challenge to meet USDA expectations," Sherwell said, forecasting Mexico to produce about 800,000 tonnes of raw sugar for the United States in 2017-18 crop year that began Oct. 1.

Sherwell forecast the total production in Mexico at about 6 million tonnes.




This article appears in: World Markets , Stocks , Economy , Commodities


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