Sugar prices closed higher on Tuesday following U.S. Department of Agriculture’s (USDA) decision to block additional specialty sugar imports. Also, on the bearish side, Pakistan decided to sharply reduce its sugar import tender.
October NY world sugar #11 (SBV25) on Tuesday closed up +0.26 (+1.60%), and August London ICE white sugar #5 (SWQ25) closed up +25.30 (+5.40%).
The U.S. Department of Agriculture, in alignment with Secretary Rollins’ Farmers First policies, announced no additional imports of specialty sugars beyond what U.S. international obligations dictate.
Read also: USDA blocks additional Specialty Sugar imports
“Worse, a trade landscape that, over the last four years, favored foreign competitors over America’s farmers, ranchers, and producers, lead to what is projected to be the largest agricultural trade deficit on record. President Trump‘s America First approach is tipping the scales back in favor of American agriculture. Although sugar policy is uniquely designed to protect sugar farmers from the dumping of heavily subsidized foreign sugar, those farmers are not immune from the same distress facing other agricultural producers. Over the last 20 years, sugar imports have more than doubled and producers have lost 15% of the U.S. sugar market to imports, leading to closures of mills and processors—economic and financial losses that impact farmers, rural communities, and consumers. This decision begins to right the ship.”
Read also: Pakistan revises its international tender for sugar import
In the bearish factor, the Trading Corporation of Pakistan (TCP), following government direction, significantly cut its sugar import tender from 300,000 metric tons to just 50,000 metric tons, a bearish factor that partly offset the bullish U.S. policy move. Pakistan’s cabinet on July 8 approved an increase in sugar imports to stop what it called artificially high domestic sugar prices.
