The inversion in world sugar futures has continued for well over a year. Brazil is a key factor not only because of prospects for a large crop, but the ability to switch sugarcane away from ethanol to sugar. Beet sugar production is forecast at 3.90 million tons, raw value, representing 55 percent of total expected sugar production and down 50,000 tons from last year. The beet sugar production forecast is 100,000 tons below the June forecast due to lower acreage and yield. Acreage will be down in California, Ohio, Michigan, Idaho, and Texas.
States registering acreage increases include Colorado, Minnesota, Montana, and North Dakota.
In Michigan and Ohio especially, high prices have drawn farmers to crops such as corn, soybeans, and dry beans. Cane sugar production is forecast at 3.15 million tons, raw value, down nearly 300,000 tons from last year, and up 20,000 tons from the June forecast. Florida's acreage for sugar and seed is projected unchanged at 437,000, and Florida's sugar production is forecast at 1.76 million tons raw value, similar to the amount produced in recent years. Frequent rains during the growing season and no significant storm damage allowed Florida's cane to make good growth, and Florida is preparing to begin milling in late October. Louisiana's sugar production is forecast at 870,000 tons raw value, down from last year's record because of freeze damage in early 1996.