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Tightening Sugar Stocks Forecast

WASHINGTON - May 12/09 - SNS -- Residual supplies of sugar are expected to shrink considerably in the United States in the coming marketing year, according to the latest supply and demand forecasts from the USDA's World Agricultural Outlook Board.

Projected U.S. sugar supply for fiscal year 2009-10 of 11.1 million short tons, raw value, is down 923,000 tons from 2008-09, as lower beginning stocks and imports more than offset higher production.

Higher beet sugar production is due to increased area, while higher cane sugar production results from improved yields mainly in Florida.

Imports under the sugar tariff rate quota (TRQ) are put at 1.2 million short tons to reflect the minimum U.S. import commitments and a projected TRQ shortfall of 150,000 tons. The Secretary of Agriculture will announce the actual TRQ level at a later date.

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