Source: USDA, 9/12/13

The U.S. Department of Agriculture today announced that the Commodity Credit Corporation (CCC) is offering to exchange its recently acquired sugar inventory for credits held by refiners holding licenses under the Refined Sugar Re-export Program. This exchange offer will be administered in a similar manner as the exchange portion of the sugar actions announced by news release on June 17, 2013, and July 23, 2013.

USDA is taking this action based upon the success of the earlier actions that removed 345,712 metric tons of import supply in exchange for 106,742 metric tons of CCC inventory. The earlier actions have resulted in U.S. raw sugar prices approaching Congressionally-mandated sugar price support levels. The purchase of credits held by refiners holding licenses under the Refined Sugar Re-export Program is preferable at this time to other available inventory management options because it minimizes the cost of the sugar program. This exchange will reduce the sugar surplus by more than the CCC sugar exchanged, which will reduce the incidence of future CCC sugar loan collateral forfeitures.

The Farm Service Agency’s invitation to exchange Re-export credits, as well as the results of earlier USDA sugar actions, can be found on the FSA Commodity Operations website at: www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=landing