Wednesday, May 18

US sugar prices to remain near peak as beet loses area to soy -report

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NEW YORK — Sugar prices in the United States, which hit a 11-year high last year, could reach a new peak in coming months as the market remains well supported and beet planted area is seen falling as some farmers switch to soybeans.

According to a report by the research arm of Dutch bank Rabobank, which specializes in agriculture, sugar prices in the United States, one of many items fueling food inflation in the country, will stay high during most of 2022 and probably into 2023.

“The coming soybean crushing capacity is expected to push demand for soybeans and, thus, acres,” said the report released on Monday, projecting beet area to fall from nearly 1.16 million acres in 2021/22 to around 1.14 million acres in 2022/23 .

The United States is boosting its soybean crushing capacity as demand for biofuels made with soyoil rises.

Rabobank does not expect beet area to recover to 2021/22 levels until at least 2025/26.

The bank said sugarcane area in the United States is expected to remain stable, while sugar consumption could continue to recover from the pandemic during this year and in 2023.

The United States uses beet to make roughly half of the sugar it produces, the other half coming from sugarcane produced in the South. (Reporting by Marcelo Teixeira; Editing by Andrea Ricci)

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