Milling & Baking News - March 24, 2020 - 28

Washington

USDA moves to ensure school meal
programs continue during pandemic
WASHINGTON - To ensure input is
considered from stakeholders involved
with supplying meals to children in the
public school systems throughout the
country, the US Department of Agriculture (USDA) is extending the comment
period for proposed reforms to rules on
school meals. The proposed reforms,
which were announced on Jan. 17, would
make the administration of school and
summer meal programs less cumbersome
and more flexible. The USDA announced
it would extend the comment period by
30 days, due to how many stakeholders
in the program are currently dealing with
the impact of school closings resulting
from the coronavirus pandemic. The new

deadline for comments is April 22.
"USDA is providing additional time to
ensure those who wish to provide input
do not miss out on the opportunity while
dealing with the impacts of
the novel coronavirus outbreak," the agency said.
"This extension will allow schools, state agencies, stakeholders, and
others who are working
tirelessly to ensure children have food to eat while schools are
closed the opportunity to provide valuable feedback."
Agriculture Secretary Sonny Perdue recently announced provisions to facilitate

DOC raises refined sugar imports
by 200,000 tons at USDA request
WASHINGTON - Following the release
of its March 10 World Agricultural Supply and Demand Estimates report that
reflected a potential US sugar shortage,
the US Department of Agriculture announced the US Department of Commerce (at USDA's request) had acted to
boost refined sugar imports from Mexico.
"Current market conditions point to a
sugar shortage," the USDA said.
"Consistent with the Commerce Department's Agreement Suspending the
Countervailing Duty Investigation on
Sugar From Mexico, the US Department
of Agriculture (USDA) today notified the
Department of Commerce (Commerce)
of an additional need for sugar in the US
market of 200,000 short tons raw value
(STRV) of refined sugar," the USDA said.
"Consequently, Commerce has increased
the quantity of Mexican refined sugar

permitted to be exported by 200,000
STRV for the Oct. 1, 2019, through Sept.
30, 2020, period.
"This action is a further step in ensuring an adequate supply of sugar to the US
market, given the terms of the US sugar
program and the Agreement Suspending
the Countervailing Duty Investigation on
Sugar from Mexico."
At USDA's request, the DOC on Nov.
25, 2019, increased Mexico's refined sugar
export limit by 100,000 tons after it became
evident US beet and cane sugar production would be down sharply from 2018-19.
"In the same way as the November
request, today's increase in Mexico's refined sugar export limit will only change
the mix between refined and other sugar," the USDA said.
The USDA said it would continue to
monitor the market to assess supplies.

Sugar supply off from February on
domestic production, import cuts
WASHINGTON - The US Department
of Agriculture, in its March 10 World Agricultural Supply and Demand Estimates
report, lowered forecasts for US beet
sugar production and drastically cut forecast imports from Mexico, resulting in an
unprecedented 2019-20 ending stocksto-use ratio of 7.2%, down from 12.4%
forecast in February and compared with
14.5% in 2018-19.
US sugar ending stocks were forecast
at 887,559 short tons, raw value, down
28 / March 24, 2020

Milling & Baking News

about 628,000 tons, or 41%, from 1,516,000
tons as the February forecast, and down
895,000 tons, or 50%, from 1,783,000 tons
in 2018-19.
US sugar production was forecast at
8,031,000 tons, down 126,820 tons from
February based on a like reduction in
2019-20 US beet sugar production, forecast at 4,317,000 tons, down 2.9% from
February, down 13% from 4,939,000 tons
in 2018-19 and the lowest since 2008-09.
Cane sugar production was forecast at

meal availability at no cost to students
during school closures, while minimizing exposure to the coronavirus. During a
public health crisis, the USDA is granted
the authority to waive the requirement to
serve the meals in a group setting to minimize the risk of spreading disease.
"USDA is using all available program
flexibilities and contingencies to serve our program
participants across our 15
nutrition programs," the
agency said. "We have already begun to issue waivers to ease program operations and protect the health
of participants. As of today, USDA has
been asked to waive congregate feeding
requirements in all 50 states, the District
of Columbia, and Puerto Rico, and USDA
has granted those requests." MBN
In its March 10 WASDE, the USDA
lowered forecasts for US beet sugar production and drastically cut forecast imports from Mexico, resulting in a 2019-20
ending stocks-to-use ratio of 7.2%, down
from 12.4% forecast in February and compared with 14.5% in 2018-19. US sugar
ending stocks were forecast at 887,559
tons, down 41% from the February forecast and down 50% from 2018-19.
The USDA is required to maintain the
US ending stocks-to-use ratio at 13.5%
under terms of the suspension agreements with Mexico. Prior to the March 10
action to boost refined sugar imports by
200,000 tons, the shortfall in US supply to
get to 13.5% was 768,000 tons.
The USDA on March 10 also forecast
Mexico's 2019-20 sugar production at
5,200,000 tonnes, actual weight, down 19%
from 2018-19 due mainly to drought during the growing season, and slashed forecast 2019-20 exports of sugar from Mexico
to the United States by 472,287 tonnes
from February to 996,834 tonnes. MBN
3,713,000 tons, unchanged from February but down 8% from last year. Total US
sugar production would be the lowest
since 2010-11.
Imports from Mexico were forecast
at 1,165,000 tons, down 551,844 tons, or
32%, from 1,717,000 tons forecast in February but up 16.5% from 1,000,000 tons a
year earlier.
High-tier imports were forecast at 150,000
tons, up 50,000 tons from last month and
up 58,000 tons, or 63%, from 92,000 tons
in 2018-19, "based on import pace and on
favorable margins between US and world
refined sugar prices," the USDA said.
Tariff-rate quota imports at 1,674,000
bakingbusiness.com / world-grain.com

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Milling & Baking News - March 24, 2020

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