Source: USDA, 9/26/13

USDA’s Commodity Credit Corporation (CCC) announced today the results of the extension to the third sugar exchange, taken on Sept. 19, 2013, to reduce its recently acquired sugar inventory and address the current domestic sugar market surplus.

The extension to the third sugar exchange reduced CCC’s sugar inventory by 26,003 metric tons by exchanging that sugar for 65,836 metric tons of credits under the Refined Sugar Re-Export Program. CCC received a weighted average ratio of 2.53187 tons of import access per ton of CCC inventory, with the import access ranging from 2.500 tons to 2.551 tons, and this latest action reduced sugar available to the market by 39,833 metric tons.

This action depleted CCC’s current inventory of sugar and, combined with previous sugar exchange activities, has reduced the domestic sugar surplus by reducing import access by 551,429 metric tons.
In an attempt to prevent additional loan forfeiture activity for 2012-crop sugar loans, CCC will consider Feedstock Flexibility Program (FFP) bids today, Thursday, Sept. 26, 2013. CCC will award contracts on Sept. 27, 2013, as warranted, with information made available to the public on Sept. 30, 2013.

Additional information on this action can be found online: www.fsa.usda.gov/FSA/webapp?area=home&subject=coop&topic=pas-sa.