Sugar Confusion

 Some recent headlines from various sources.  Here, from the American Sugar Alliance: SUGAR PRODUCERS TELL USDA FOOD COMPANIES ARE CRYING WOLF AS SUPPLIES STABLE.  For the better part of a year - large food manufacturers have lobbied USDA officials to bring in additional sugar imports. Such a move would lower sugar prices and help pad food company profits. In recent weeks - sugar prices are falling - which indicates an oversupplied - not under supplied - market.

 The Capital Press says that sugar supply estimates may be at historically low levels in 2010. But they also say that U.S. sugar production and imports from Mexico (which are not limited thanks to NAFTA) could be significantly higher than USDA estimates.

 But sugar prices are low…but there isn’t enough sugar unless we import?  What’s up? Here’s Mark Duffin, Executive Director, Idaho Sugarbeet Growers Association discussing the USDA’s measurement system: “It’s a pretty complex program and the USDA comes out with their monthly estimates and they try to estimate the consumption and the production and the imports and what doesn’t show up in those now is under NAFTA there is no limitation on imports from Mexico, they’re just estimating what comes in from Mexico, now last year they way underestimated what eventually came in and we don’t know if they’re underestimating that again.”