SUGAR AND SWEETENERS YEARBOOK -- SUMMARY                       December 18,1997
December 1997, SSS-222
               Approved by the World Agricultural Outlook Board
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This SUMMARY is published annually by the Economic Research Service, U.S.
Department of Agriculture, Washington, DC 20036-5831.  The complete text of
SUGAR AND SWEETENERS will be available 1-2 weeks following this summary
release.
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1997/98 U.S. Sugar Production Near Record

U.S. sugar production in 1997/98 (October 1997-September 1998) is
projected at 7.86 million short tons, raw value, up 9 percent
from 7.2 million tons in 1996/97. If realized, this would be
only 1 percent below the record U.S. sugar production of 1994/95.

Beet sugar production is forecast at 4.4 million tons, raw value,
representing 56 percent of total expected sugar production and up
10 percent from last year. The beet sugar production forecast is
100,000 tons above the September forecast based on better-than-expected 
beet production and higher sugar content. Beet acreage harvested is 1.43
million acres, 107,000 acres above last year, and on par with 1992/93 
through 1995/96. Beet acreage was up in all major growing states. The 
increase in acreage was due in part to higher sugarbeet prices and 
lower prices of competing crops. The season average price for sugarbeets
in 1996/97 was $43.90 per ton, up $5.80 per ton (15 percent) from
the year before.

Cane sugar production is forecast at 3.46 million tons, raw
value, up 265,000 tons from last year. Louisiana is forecast to
produce 1.25 million tons, which would be up 200,000 tons from
last year. Louisiana's forecast of acreage harvested is a record
375,000 acres, up 12 percent, and sugarcane yield is forecast at
29 tons per acre, 4 percent above last year, the previous record.
The implied yield of 3.3 tons of sugar per acre would exceed last
year's record by 6 percent. A new variety is contributing to
higher per-acre cane yields. The crop was about 68 percent
harvested by the end of November. Weather had been excellent in
October and early November, but rains in late November hampered
the harvest and increased trash and mud entering the mills. Most
mills will finish by the end of the year, with a few likely to
operate into early January.

Florida's sugar production is forecast at 1.75 million tons, up
71,000 tons from last year. The forecast sugarcane yield is 34
tons per acre, from 419,000 acres harvested for sugar, resulting
in 14.2 million tons of cane, up 3.2 percent from last year. The
implied recovery rate, 12.28 percent, would be 10 percent above
last year and the 5-year average. Florida's season runs from
October through March or early April, with January-March
production averaging 57 percent of the total.

U.S. sugar consumption, measured by deliveries, for 1997/98 is
forecast at 9.95 million tons, up 1.85 percent or 181,000 tons
from the revised estimate for 1996/97. Consumption has been
increasing 160,000 tons, or about 1.9 percent, per year since
1985/86. Among industrial users, 1996/97 sugar use by the baking,
cereal, and allied products category grew 9 percent, to 2.1
million tons, while sugar used in beverages fell 12 percent, to
169,000 tons.

The raw cane sugar tariff-rate quota (TRQ) for 1997/98 was set at
1.8 million metric tons, raw value, with an initial allocation of
1.2 million. The refined sugar TRQ was set at 50,000 tons, raw
value, with 25,000 allocated to Mexico under North America Free
Trade Agreement (NAFTA) provisions. 

In short tons, imports under the TRQ are forecast at 1.96
million, including a forecast shortfall of 50,000. Other forecast
imports include 300,000 tons for re-export programs; 10,000 for
polyhydric alcohol; 50,000 under tariff code 1702.90.40.00; and
5,000 of high-tariff sugar.

U.S. sugar stocks at the end of 1997/98 (September 30, 1998) are
forecast at 1.52 million short tons, up slightly from 1996/97.
Stocks reflect a projected total supply of 11.67 million tons and
total use of 10.15 million.

U.S. raw sugar prices (New York No.14 contract) averaged 21.90
cents per pound in November, compared with 22.12 cents in
November 1996, and 22.27 cents in October 1997. Refined beet
sugar list prices in October-December averaged about 25 cents per
pound, compared with 29.00 cents a year ago.

High fructose corn syrup (HFCS) production in 1997 is forecast at
8.6 million short tons, dry basis, up 5.3 percent from 1996. The
HFCS-42 spot price has been about 10.5 cents per pound, dry
basis, for most of 1997, down about 28 percent from 14.5 cents in
1996. The HFCS industry expanded capacity significantly between
1995 and 1997, putting downward pressure on prices. U.S. HFCS
consumption has grown at 4 to 5 percent a year, below the rate of
capacity growth. U.S. exports of HFCS to Mexico continue to grow
despite increased tariffs in 1996 and the imposition of
provisional anti-dumping duties earlier this year. 

Printed copies of the Sugar and Sweetener Situation and Outlook
Yearbook will be available in about a week. For more information,
contact Jackie Salsgiver 202-694-5258. This issue contains 
two special articles, "Sweetener Flows in the North American
Region," and "Cuba's Sugar Industry: An Update." The text of the
report will also be available electronically, for details call
202-694-5050.
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