SUGAR AND SWEETENERS YEARBOOK -- SUMMARY                    May 18, 1999
May 1999, ERS-SSS-225
               Approved by the World Agricultural Outlook Board
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This SUMMARY is published by the Economic Research Service, U.S. Department 
of Agriculture, Washington, DC 20036-5831.  The complete text of the report
will be available electronically about 1 week following this summary release.
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May 18, 1999

LOW SUGAR CONTENT REDUCES 1998/99 U. S. BEET SUGAR PRODUCTION

U.S. beet sugar production for 1998/99 is projected at 4.225
million short tons, raw value (STRV), down from 1997/98. The
National Agricultural Statistics Service (NASS) has estimated a
record sugarbeet crop of 32.66 million tons, but the crop has a
poor sugar content. 

U.S. cane sugar production for 1998/99 is projected at 3.848
million STRV. Florida is projected at 2.127 million STRV, 10
percent above the preceding record year. Louisiana is projected
at 1.260 million STRV, slightly less than last year's record.
Texas is projected at 104,402 STRV, a considerable improvement
over the previous year. Hawaii is projected at 350,000 STRV, and
the Puerto Rico cane sugar is projected at 7,000 STRV.

Imports under the 1998/99 tariff-rate quota (TRQ) are projected
at 1.412 million STRV in the May 1999 World Agricultural Supply
and Demand Estimates (WASDE) report. Other imports are currently
projected at 615,000 STRV, an increase of 120,000 STRV over the
April 1999 projection due to an expected increase in imports of
high-tier tariff sugar. Other import projections are for the
Refined Sugar Re-export Program (175,000 STRV), the Sugar
Containing Products Re-export Program (200,000 STRV), imports for
the production of polyhydric alcohol (15,000 STRV), and the
estimated sugar content of sugar syrups entering the United
States under the tariff heading 1702.90.40 (100,000 STRV).

Deliveries in 1998/99 are currently forecast at 9.975 million
STRV. Sugar exports under the Refined Sugar Re-export Program are
currently projected at 175,000 STRV. Ending stocks are projected
at 1.629 million STRV, resulting in an ending stocks-to-use ratio
of 16.0 percent, above the trigger level for the cancellation of
the May TRQ tranche. 

Beet sugar production for 1999/2000 is projected at 4.530 million
STRV, up 7 percent from 1998/99. NASS' estimates of acreage
intentions for sugarbeets exceeded last year's acreage planted by
50,000 acres. Analysis supports a U.S. yield projection of 21.0
tons per acre, implying a sugarbeet crop of about 31.8 million
tons. With normal weather and technical improvements consistent
with historical trends, sugar yield is projected at 3.00 tons an
acre.

U.S. cane sugar production for 1999/2000 is projected at 3.870
million STRV. Florida's cane sugar production is projected at
2.025 million STRV. U.S. cane acreage harvested for sugar is
expected to be slightly above this year's level, and sugar per
acre is expected to be lower but consistent with trend at 4.71
tons per acre. Louisiana cane sugar production is projected at
1.400 million STRV. Acreage harvested is projected to increase by
20,000 acres, and yields are expected to continue increasing.
Texas' cane sugar production is projected at 100,000 STRV,
Hawaii's is projected at 330,000 STRV, and Puerto Rico's is
projected at 15,000 STRV.

Nonquota imports for 1999/2000 are projected at 725,000 STRV. The
largest component is high-tier tariff imports at 260,000 STRV.
The remainder of other import projections are for the Refined
Sugar Re-export Program (175,000 STRV), the Sugar Containing
Products Re-export Program (175,000 STRV), imports for the
production of polyhydric alcohol (15,000 STRV), and the estimated
sugar content of sugar syrups entering the United States under
the tariff heading 1702.90.40 (100,000 STRV). The raw and refined
TRQ for 1999/2000 will be announced later this year but must sum
to at least 1.256 million STRV, the World Trade Organization's
minimum.

Deliveries for 1999/2000 are projected at 10.150 million STRV,
and exports for the Refined Sugar Re-export Program are projected
at 175,000 STRV. Projected total use for 1999/2000 sums to 10.325
million STRV, up 175,000 STRV over 1998/99. 

The U.S. Department of Agriculture (USDA) currently projects
Mexican sugar production for the November 1999/October 2000
marketing year (MY 1999) at 5.14 million metric tons, raw value
(MTRV). Acreage is expected to be about the same as this year,
although yields should be higher, about 72 metric tons per
hectare. Sugar consumption is expected to be flat in MY 1999,
about 4.2 million MTRV. Projected exports are 900,000 MTRV, about
6 percent lower than predicted exports in MY 1998. The Mexican
Government has agreed to continue its financing assistance into
MY 1999 to keep stocks at least 600,000 MTRV. Sugar stocks for FY
1999 are projected to be 629,000 MTRV.

U.S. high fructose corn syrup (HFCS) production in 1999 is
projected to increase by 4.6 percent to 9.572 million tons: 3.431
million tons for HFCS-42 and 6.141 million tons for HFCS-55.
HFCS-42 production growth is projected at 4.1 percent, up from
3.4 percent in 1998. HFCS-55 production growth is projected at
4.9 percent, down from 6.6 percent in 1998. 

Printed copies of the Sugar and Sweetener Situation and Outlook
Yearbook will be available in about a week. For more information,
contact Stephen Haley 202-694-5247. This report will contain a
special article "Early-Season USDA Projections of Sugar
Production." The text of the report will also be available
electronically via the ERS website at www.econ.ag.gov.

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