US reallocates sugar import quotas as local prices remain high
Band Marcelo Teixeira
NEW YORK, July 9 (Reuters) – The U.S. government said on Friday it was reallocating some of its reduced-tariff sugar import quotas to other countries as it tried to secure supplies in the domestic market and curb sky-rocketing local prices for the market. ‘sweetener.
The US Trade Representative said he was reallocating 76,571 tonnes of sugar to several exporting countries, with the Dominican Republic and Brazil receiving the largest shares.
The USTR, which acts on quotas with the US Department of Agriculture, said it decided to reallocate low-tariff quotas – known as tariff quotas – after consulting with the original licensees and making a decision. say that they would not be able to provide the volumes that were originally allocated to them.
The redistribution of sugar import quotas comes as sugar futures for the US domestic market hit a nine-year high on Thursday at 36 cents a pound. SFSU1
Sugar prices in the United States are much higher, almost double the international benchmark prices, because the government is protecting the domestic industry.
“The USDA is acting to slow the recovery of sugar,” said Vincent O’Rourke, analyst at sugar trader and supply chain service provider Czarnikow Group.
“This should help increase raw sugar inventories. The USDA hopes this will keep US raw sugar prices from rising further,” he added in a note to customers.
The reduced rate quotas for sugar imports in 2020/21 will total nearly 1.12 million tonnes.
The USDA will release new data on the US sugar market on Monday in its monthly supply and demand report.
(Reporting by Marcelo Teixeira; Editing by Dan Grebler)
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