sugar and sweetener report

Transcription

1 UNITED STATES DEPARTMENT OF AGRICULTURE sugar and sweetener report VOL. 1 No.4 MAY 1976 ~LBERT R. MANN LIBRARY ITHACA, N. Y MAY \ Commodity Economics Division ECONOMIC.RESEARCH SERVICE th St., SW Tel. (202) Fruit and Vegetable Division AGRICULTURAL MARKETING SERVICE 2082 S. Agriculture Bldg. Tel. (202)

2 TABLES Number SITUATION AND OUTLOOK Page S- 1 Sugar: World production, consumption, and stocks, 1970/71 to 1975/ S- 2 Listing of countries which typically supply the United States with significant 'quantities of sugar; some of which qualify as beneficiary developing countries eligible for duty-free treatment S- 3 Sugarbeets: Planted acreage by states and area, and indicated S- 4 U.S. beet and cane sugar deliveries to domestic users S- 5 Monthly, quarterly, and annual sugar prices and deliveries, S- 6 Sugar and products containing caloric sweeteners: Retail prices, U.S. average, , and' by month 1975 to date S- 7 Corn sweeteners: Per capita U.S. consumption, S- 8 World centrifugal sugar production in specified countries, 1971/72 to 1975/ S- 9 Domestic sugar crops: Production, price per ton, and value of production, S-10 Cane and beet sugar act payments by state and area, 1973 and 1974 crops S-11 U.S. annual imports by country, S-12 Bulk drv sugar: Wholesale prices, selected cities, by months, S-13 Granulated sugar: Wholesale prices, 100 pound paper bags, selected cities, by months, S-14 Liquid sugar (sucrose and invert): Whole:;ale prices, selected cities, by months, S-15 Offshore cane sugar sold at retail in New York, New York: Prices and marketing spreads, annual 1973 and by months 1974 and S-16 Beet sugar sold at retail in Chicago, Illinois: Prices and marketing spreads, annual1973 and by months 1974 and S-17 Louisiana cane sugar sold at retail in Chicago, lllinois: Prices and marketing spreads, annual 1973 and by months 1974 and S-18 Florida cane sugar sold at retail in Atlanta, Georgia: Prices and marketing spreads, annual 1973 and by months 1974 and S-19 Beet sugar sold at retail in Los Angeles, California: Prices and marketing spreads, annual 1973 and by months 1974 and S-20 Molasses: Blackstrap, beet, citrus, and corn (hydrol), annual average and first quarter average 1976, price f.o.b. tank car or tank truck MARKET NEWS 1 U.S. Sugar supply and disposition by primary distributors, January-February Distribution of sugar by primary distributors, January-February 1976 and Stocks of sugar held by primary distributors in the continental United States, February 29, 1976 and February 28, Distribution of sugar by primary distributors in the continental United States, March and January-March 1976 and Stocks of sugar held by primary distributors in the continental United States, April 3, 1976 and March 31, Mainland sugar: Production and marketings, January-February 1976 and Sugar receipts of refiners and importers by source of supply, January-February 1976 and Primary distribution of sugar, continental United States, by states, February Primary distribution of sugar, continental United States, by states, January-February Primary distribution of sugar, continental United States, by states, January-February 1976 and World and U.S. sugar prices: Annual, , and monthly U.S. cane and beet sugar prices: Various marketing territories, annual and monthly Wholesale price quotation for sugar, corn sirup, and dextrose Refined sugar production and month end stocks CHARTS SITUATION AND OUTLOOK S- 1 U.S. beet sugar production s- 2 u.s. sugar deliveries and prices s- 3 u.s. sugar exports s- 4 u.s. raw sugar prices s- 5 u.s. sugar prices SSR-2, MAY 1976

3 In This Issue SITUATION AND OUTLOOK Principal contributors: Fred Gray and Thomas W. Little Page Summary 5 Sugar: The World Situation The U.S. Situation Production Imports Consumption Exports Stocks The Price Situation U.S. Price Outlook Industrial Molasses Com Sweeteners Honey Saccharin Cocoa and Chocolate MARKET NEWS Principal contributors: james R. Thorpe and Robert F. Sweitzer Sugar Market Highlights Statistical Series SWEETENER PUBLICATIONS Annotated Review Compiled by: Larry C. Larkin The Sugar and Sweetener Report is published monthly and is approved by: The Outlook and Situation Board The Summary was released on April28, Commodity Economics Division Economic Research Service Prepared by Fruit and Vegetable Division Agricultural Marketing Service U.S. Department of Agriculture Washington, D.C SSR 2, MAY

4 ANNOUNCEMENT Market news and situation and outlook information on sugar, sugarcane, sugarbeets, corn sweeteners-corn sirup, dextrose, and high-fructose corn sirup-honey, saccharin, molasses, sugar-containing products, cocoa, and chocolate previously published in the Sugar Market News and the Sugar and Sweetener Situation will now be published in a joint publication, the Sugar and Sweetener Report. Monthly sugar market news, currently published in the Sugar Market News, will continue to be published by the Fruit and Vegetable Division of the Agricultural Marketing Service in each monthly issue of the Sugar and Sweetener Report. Reports published in February, May, September, and December will, in addition, contain sugar and sweetener situation and outlook analyses previously published in the Sugar and Sweetener Situation by the Economic Research Service. A summary of the Sugar and Sweetener Situation will also be carried in the National Food Situation. Persons currently receiving the Sugar Market News and the Sugar and Sweetener Situation will be mailed the Sugar and Sweetener Repo~t. Others who wish to receive the Sugar and Sweetener Report may request that their names be placed on the mailing list by forwarding a request and their address to- Automated Mailing List Sections Office of Plant and Operations U.S. Department of Agriculture Washington, D.C See form on back page. 4 SSR-2, MAY 1976

5 SITUATION AND OUTLOOK Principal Contributors: Fred Gray and Thomas W. Little Commodity Economic Division Economic Research Service SUMMARY World Supply-Demand Situation Continues in Close Balance Recent estimates indicate a world sugar crop of around 90.4 million short tons (82 million metric-raw value). This is about 5 percent above the reduced crop. With expanding use of sugar, the world consumption estimate for the current marketing year about matches the larger world output. But carryover stocks from the marketing year are relatively small (18 million short tons-16.3 million metric). The price enhancement effect of a close supply-demand balance was partially offset by large Philippine sugar stocks. The U.S. raw price (New York spot) bas fluctuated from $14.50 to $17.00 per cwt. since last October. Recently, much of the Philippine crop was sold to USSR and Western Europe. Although both world and U.S. raw prices may strengthen seasonally this summer, there is little basis for much change in prices, at least until new crop prospects for sugar begin to significantly influence the market. In April, U.S. growers reported intentions to plant a 3-percent smaller 1976 acreage of sugar beets. Much of the indicated cut in higher-yielding areas probably reflects the generally lower level of sugar prices relative to a year ago. Sugar beet acreage in Europe may increase in 1976, but only slightly following the increase of nearly a fifth in Lower sugar prices may have less influence in limiting world production of cane sugar where capacity bas been expanding. Domestic use of sugar this year may total 10.5 to 11 million tons (raw value), up from about 10 million in calendar year 1975, but down from the more normal level of over 11 million tons in earlier years. This would imply an increase in per capita refined use to 92 to 95 pounds compared with under 90 pounds in 1975 when prices of sugar products were relatively stable, though at high levels. First quarter U.S. deliveries (marketings) of refined sugar totaled nearly 2.5 million short tons (raw value), some 0. 7 million above a year earlier. Although overall U.S. sugar stocks in early April were about the same as a year ago, U.S. cane refiners are carrying sharply smaller stocks, while beet sugar stocks are somewhat larger, due in part to the record large 1975 beet sugar crop. Imports of sugar this year may increase 0.3 to 0.5 million tons (raw value) from the relatively small 3.9 million in calendar The extent of the increase will depend on U.S. production, domestic demand for sugar, and the competition of high-fructose corn sirup in many uses for sweeteners. Corn sweetener prices have declined in recent months as price competition from beet and cane sugar bas increased. According to various trade sources, the U.S. corn grind apparently totaled over 300 million bushels in calendar 1974 and Increased shipments of corn sweeteners reportedly compensated for a decline in corn starch deliveries in calendar More complete information on consumption of corn sirup, dextrose, and high-fructose corn sirup appears in the body of the report. On the international scene the world cocoa and chocolate situation is beginning to tighten, though the impact on the U.S. confectionary industry will not be immediate. Thus, sugar deliveries to this important market will likely not decline for some time.. WORLD SITUATION Record World Crop Estimate Unchanged1 Preliminary estimates continue to indicate a record world sugar crop1 of about 90.4 SUGAR ( ) million tons. At this level, the world sugar crop would exceed the previous high by 1.8 (1.67) million tons and the short crop by 4.0 (3.6) million tons (table S-1). 1The crop year discussed here begins not earlier than ~a:y of 1 year, and ends not later than April of the fol OW1ng year, even though actual production may fall somewhat outside the May-April season. 2 V alues shown in parentheses are metric values. Urtless otherwise indicated, production data not in parentheses are short tons (2,000 pounds per ton). To convert short tons to metric tons, multiply short tons by the factor SSR-2, MAY

6 Estimated world beet sugar output of about 36 million tons (raw value) is up nearly 13 percent-4.0 million tons-over the previous crop, while estimated cane sugar production of over 54 million tons remained the same (table S-1). Expanded plantings have been largely responsible for the significant increase in the world sugar crop. Total world plantings of 40.1 million acres were up 7 percent (2.6 million acres) from Three-fourths of the increase was sugar beet acreage (2.1 million acres), while sugarcane acreage expanded only 500,000 acres in response to record high 1974 prices. Most of the expanded sugar beet acreage was in Europe and the United States. Weather was rather erratic for the season! Drought plagued such diverse areas as northeast Brazil, Central America, Dominican Republic, Hawaii, South Africa, the Soviet Union, and much of Europe. In contrast, considerable flooding limited potential output in Australia, Colombia, India, the Red River Valley of the United States, and Romania. And frosts last July severely damaged sugarcane in Argentina and southern Brazil. Sugar output in Mauritius (an island off the African coast) was reduced by a cyclone. Grower and worker unrest was a problem in some of the smaller Caribbean islands, and production was lowered in Guyana because of an industry work stoppage in the middle of the fall harvest. Despite the many reports of poor weather and other problems around the globe, estimated produc. tion in was down from the previous year in only four of the 20 major countries, each of which normally produces over a million tons of sugar annually-australia, Argentina, Brazil, and India. In three countries-mexico, Peru, and South Africa-production totaled about the same as in 1974/75. Of the 13 remaining large producers-colombia, Cuba, Dominican Republic, France, West Germany, Italy, Poland, Mainland China, Indonesia, Thailand, Turkey, the Soviet Union, and the United States-production was up (see table S-8). Due to both expanded acreage and higher yields, U.S. cane sugar production will approximate 2.9 million tons, an increase of 16 percent from last year's 2.5 million tons. U.S. beet sugar production will likely total about 3.9 million tons, up 30 percent from the crop of 3 million tons. A 17-percent increase in sugar beet acreage per mitted farmers to harvest the largest European crop in years, despite significant heat and drought. The crop produced 19 million tons of beet sugar, up 16 percent from the previous year's crop. Over two-thirds of the 2.3-million-ton increase was in Western Europe, mostly in the European Com munity. In Eastern Europe, total production was up about 8 percent (see table S-8). Year beginning Table S-1-Sugar: World production, consumption, and stocks, 1970/71 to 1975/76 Prod11ctlon Consumption Ending stocks Ending stocks as May 1 Change hange Change a percent Cane Beet Total from pre Total from pre- Total from pre- of convlous year vlous year vlous year sur.1ptlon ,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Percent short tons short tons short tons short tons short tons short tons short tons short tons raw value raw value raw value raw value raw value raw value raw value raw value 1g7o j o ,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Percent metric tons metric tons metric tons metric tons metric tons metric tons metric tons metric tons raw value row value raw value raw value raw value raw value raw value raw value o , Entire crop Included for all harvests begun during the Indicated May 1-Aprll 30 crop year, regardless of when harvest Is completed. 3 Prellmlnary. 3 Estlmated. source: U.S. Department of Agriculture, Foreign Agricultural Service. 6 SSR 2, MAY 1976

7 Sugar production in the Soviet Union is now expected to total 8.8 million tons, up about 300,000 tons from A summer drought reduced yields below the average in both the Federated Socialist Republic and in the Ukraine, which normally produces 55 percent of the Soviet crop. While the Soviet beet crop was reduced because of lower yields, higher than anticipated sugar recovery rates allowed 1975 Soviet sugar output to increase slightly over /76 World Consumption Estimate Holds-(Up 2 Percent) World consumption for is expected to total around 90 (82) million tons, (table S-1). This is about a 2 percent (2 million tons) increase over , and a noticeable recovery in per capita consumption from depressed levels. As sugar prices declined, a partial recovery in consumption occurred. Sugar prices which crested in late 1974, have since returned to near 1973 levels. The consumption increase will be about in line with annual increases of 2 to 3 million tons recorded during the 1965/66 to period U.S. and Canadian imports were down because of lower consumption imports are expected to increase. The United States is the world's largest importer-4.0 to 5.5 million tons annually. Canada imports nearly a million tons annually. Sharply higher prices for sugar and sugar-containing products caused consumption to decline in,japan in Japanese imports for 1976 will likely total about the same as in 1975, as its consumption recovery is slower. Japan is second only to the United States in importing sugar. It's imports normally total 2 to 3 million tons annually. Consumption in Western Europe in 1975 was not greatly changed from the previous year. European prices (which are normally relatively high) were more insulated (through import limitations) from the sharp increases in sugar prices which affected the U.S., Canadian, and Japanese markets. There are some reports that Europe (excluding the USSR) may have several hundred thousand tons of refined whites (beet sugar) available for export. If this is true, decisions concerning such potential exports may be delayed until the level of 1976 l<~uropean sugar beet plantings is better known. Because its 1975 sugar output fell below anticipated levels, the Soviet Union has announced it will import 200,000 to 400,000 tons of sugar from the Philippines. Reports suggest that another 200,000 tons of refined beet sugar may be imported from Western Europe. World Carryover Stocks Likely to Continue at Low Levels World stocks at the end of are now expected to total about 18 million tons, about the same as a year earlier. Thus, world sugar stocks may be even smaller relative to total use than during the tight supply situation of (table 8-1) European Sugarbeet Acreage Prospects Up But Less Than in 1975 The second F.O. Licht estimate indicates intended 1976 planted acreage for Europe (including the Soviet Union) will increase about 3.4 percent over (The current estimate is up slightly from the first estimate of 2.5 percent). The current estimated slight increase is a marked contrast from the crop when acreage expanded nearly a fifth over the previous year. The 1974/15 and European beet yields were generally below average because of poor weather. The same poor yields this season would produce a 1976 beet sugar crop of about the same size as in But with more normal yields, 1976 European beet sugar production could be significantly higher than the large 1975 crop. U.S. SITUATION PRODUCI'ION 1975/76 U.S. Beet Sugar Estimate Up The 1975 U.S. sugar beet harvested acreage totaled about 1.52 million, up a fourth from the 1974 crop. The average yield.of 19.3 tons per acre was up over 1 ton, reflecting relatively good growing conditions. The estimated sugar beet crop of 29.3 million tons was 3 percent larger than the previous 1972/73 record crop of 28.4 million tons, and some 32 percent larger (7 million tons) than the small crop (figure 1). Beet sugar output could total 3.9 million tons in 1975, a new record. Through February, 3.2 million tons of sugar had been processed. And California and Arizona have 6 more months of processing. 1975/66 U.S. Sugarcane Crop Will Also Set Record Harvested sugarcane acreage for processing totaled about 736,000 acres for , up 7 percent from Acreage for harvest expanded in Texas, Florida, and Hawaii and remained the "F. 0. Licht's International Trade Report. SSR 2, MAY

8 U.S. BEET SUGAR PRODUCTION* MIL. TONS I California ~:~:~:::tuthwest North Central *BEET WEIGHT. USDA NEG. ERS (4) Figure S-1 Source U.S. sugar production, Crop years ,000 short tons, raw ualue cane sugar: Florida ,050 Louisiana Texas Total mainland 1,621 1,420 1,471 1,819 Hawaii... 1,119 1,129 1,041 1,109 Total cane sugar 2,740 2,549 2,512 2,928 Contlnenta I: Beet sugar 3,632 3,216 3,006 3,900 Total cane and beet sugar 6,372 5,765 5,518 6,828 1 Preliminary estimate for 1975 based on contact with area Industry o'fflclals. Source: Agricultural Marketing Service, U.S.D.A. same in Louisiana. The crop totaled about 27.5 million tons, up 16 percent (3.8 million tons) from This record crop for processing is nearly 1 million tons larger than the previous record crop of 27.2 million tons. Cane sugar production in Hawaii totaled 1.1 million tons in calendar Mainland cane sugar production is estimated at 1.8 million tons compared to nearly 1.5 million tons in While cane yields were slightly lower than earlier anticipated, higher recovery rates improved the final out tum. The completed Louisiana crop yielded 644,000 tons. The Florida sugar crop is expected to total 1.05 million tons-through January, the total was 685,000 tons. The Texas crop should yield about 125,000 tons-through February, the total was 94,000 tons Beet Planting Intentions Down; Sugarcane Acreage Uncertain U.S. growers' planting intentions as of April 1, (reported in the April 15 Statistical Reporting Service's Prospective Plantings Report) indicate 1976 sugar beet acreage will be down about 3 percent from the 1975 level (table S-3). This is a slight decline since January 1. Some beet contracts were still being negotiated on April 1 and some apprehension about the outcome existed which could have influenced planting 8 SSR-2, MAY 1976

9 ... intentions. Negotiations, however, were recently completed on April 15, and planting should proceed on schedule. Production in 1976 may decline somewhat more than planting intentions. Growers in California, Idaho, and Washington, which have higher per acre yields, have indicated they intend to reduce acreage. In contrast, growers are expanding acreage in the lower yielding States of Minnesota and North Dakota (largely Red River Valley). The indicated expansion in Minnesota and North Dakota in part reflects increased acreage to supply recently constructed facilities. A lack of railroad cars in California, and uncertain grower-processor contract negotiations in parts of Colorado, may have influenced grower decisions in those areas. Sugarcane for harvest in planted prior to this year is already growing. The actual acreage available for harvest will be determined by U.S. growers in May or June. Based on price expectations at that time growers will decide how much older acreage to plow out. It appears that 1976 U.S. cane acreage will not change much from Acreage for harvest and production is most stable in Hawaii. Early indications are that production in Hawa.U will likely total about 1,085,000 tons, down sligli'uy from 1975 due to a slight shortage of water for irrigation during the growing season. U.S. Grower Prices Drop The preliminary estimate of U.S. sugar beet grower's 1975 season average price is $27.40 per ton, compared with a record season average price of $46.80 per ton for 1974 beets, and $29.60 per ton for the more normal 1973 sugar beet crop: The current estimate for grower receipts for the 1975 crop is approximately $800 million, down from over $1 billion for the 1974 crop but up from $700 millio~ for the 1973 crop. Of course, the final level for 1975 may change slightly since a significant part of the 1975 crop has yet to be marketed. Table S-3-Sugarbeets: Planted acreage by states and area, and indicated 1976 State and area Planted I nd lcated 1976 April as per January April' cent of 1975 I I T 1,000 1,000 1,000 1,000 1,000 Percent acres acres acres acres acres Mlch lga n _ _ _... _ Ohio East North Central Minnesota North Dakota Red River Valley. _. _ _ Kansas Nebraska S Other North Central Total North Central Washington... _ Oregon Idaho Montana..... _ Wyoming Total Northwest Callfornia Arlzona New Mexico Texas Utah _ Colorado Other Southwest... ~ Total Southwest Total West Total U.S _. _.. _ _. 1, , , , , Estimates of planted acres Include acreage contract still under negotiations. 2 Relates to year of harvest. Includes some acreage carried over to the following spring. Source: Prospective Plantings, SRS, USDA. SSR-2, MAY

10 The present estimate of grower receipts for the 1975 mainland cane crop is $377 million, about half of the 1974 level but up over the 1973 level. The preliminary estimate of the 1975 season average mainland cane price is $20.80 per ton, nearly the same as received in 1973 but less than half of the record 1974 level (see tables S-9 and S- 10). IMPORTS, DOWN SHARPLY IN 1971'S, WILL INCREASE IN 1976 U.S. imports in 1975 were only 3.9 million tons, far short of the 5.8 million tons imported in 1974 and the lowest since 1964 (see table S-11). The decline was the result of a reduction in carryover stocks during the first half of 1975, reduced consumption, expected increases in domestic production, and the increasing availability of high-fructose com sirup. Of our five historically largest foreign suppliers, only the Dominican Republic shipped quantities near the 1974 export volume to the United States in Dominican shipments were 96 percent of 1974's volume. Comparable figures were 46 percent for Peru, 25 percent for Brazil, 28 percent for the Philippines, and 8 percent for Mexico. Of the five largest U.S. foreign sugar suppliers in 1974 only Brazil, the Dominican Republic, and the Philippines retained that status in Australia and the West Indies (including Guyana) replaced Mexico and Peru as members of the top five. U.S. imports of sugar are expected to be up 300,000 to 500,000 tons in 1976 from the 3.9-millionton level in The increase will depend largely on the increase in domestic use, exports of refined sugar, and the level of U.S. production. A potential 500,000-ton increase (dry basis) in high-fructose com sirup production may operate to limit imports. During the most recent 12 consecutive months (February 1975 through January 1976), imports were 4 million tons. Early indications are that Australia, Dominican Republic, Peru, and the Philippines will ship substantial quantities of sugar to the United States in Brazilian exports to the United States may not be very large until after July 1, when processing begins in the Southern area. U.S. Duty-Free Sugar Imports To Increase U.S. sugar imports from several countries supplying small but significant quantities of sugar to the United States became duty-free January 1, 1976 (table S-2). A preferential duty rate of zero (dutyfree) was established for designated beneficiary countries, under the Generalized System of Preference (GSP) authority in Title V of the Trade Act of 1974, implemented by Executive Order in Table s...:2 Specific listing of countries which typically supply the United States with Significant quantities of sugar; some of which qualify as Beneficiary Developing Countries elgible for duty-free treatment under U.S. Generalized System of Preferences (GSP) Countries not elglble for United States Generalized System of Preferences (GSP} Duty-free Treatment on any product Australla 2 Canada 2 Ecuador 3 South Afrlca 2 venezuela 2 Beneficiary Developing countries not currently eligible for GSP duty-free treatment on Sugar as of March 1, Argentina Brazil Colombia Costa Rica Dominican Republic El Sal vador 4 Guyama India Jamaica Nlcaragua 4 Panama 4 Peru Philippines Taiwan Thailand 4 Beneficiary Developing countries currently elglble for GSP dutyfree treatment on sugar as of March1,1976 Belize (British Honduras) Bolivia FIJi Islands Guatemala' Haiti Honduras Korea (South) Malagasy Republic Malawi Mauritius Mexlco 5 Mozambique Netherlands Antilles Swaziland 1 Trade Act Section 504(c) excludes beneficiary developing countries otherwise eligible from GSP on particular commodltles~uch as sugar-when U.S. Imports of a commodity In the previous calendar year amounted to either 50 percent of the value of all U.S. Imports of that commodity or to a specified value fixed each year, In relation to the Gross National Product (GNP). This value against which U.S. Imports of any commodity from a particular country Is measured for purposes of u.s. grant-. lng the preferential rate In 1976 Is $26.6 million. u.s. Imports of sugar from each country listed In this category exceeded that value In calendar These countries were specifically ex eluded by name In Trade Act of 1974 (See Trade Act Section 102(b). 3 These countries are excluded because they are current ly members of the Organization of Petroleum Exporting coun tries (OPEC); (See Trade Act Section 502 (b) (2). 4 These countries were eligible for duty-free treatment of U.S. sugar Imports, prior to March 1, 1976, based on the value of sugar Imports from each of these Individual countries In calendar These countries were not elglble for duty-free treatment for U.S. sugar Imports, prior to March 1, SSR-2, MAY 1976

11 November 1975 and Executive Order in February Sugar is only one of a large number of commodities os designated as eligible for the preferential rate. The long-term Trade Act authority to apply preferential rates is scheduled to expire on January 4, The Trade Act of 1974 specifically excludes certain countries by name, (such as Australia, Canada, and South Africa) from preferential treatment for any commodity including sugar, since they are not considered beneficiary developing countries (see Section 502(b)). The Trade Act also excludes certain categories of countries, such as members of the Organization of Petroleum Exporting Countries (OPEC). Thus, Ecuador and Venezuela are excluded from preferential treatment for any commodity including sugar because they are members of OPEC, (an international cartel). Countries which are already competitive in the U.S. market for specified commodities like sugar, are also excluded by the Trade Act from the preferential rate for that commodity. Beneficiary developing countries that are otherwise eligible are excluded when U.S. imports of a commodity from a country in the previous calendar year amounted to either 50 percent of all U.S. imports of that commodity or to a specified value fixed each year in relation to the U.S. Gross National Product (GNP). This value against which U.S. imports in 1975 are measured for purposes of granting the preferential rate in 1976 is $26.6 million. Thus, 15 countries exporting substantial quantities of sugar to the United States are currently not eligible for GSP because U.S. imports of sugar from each country exceeded $26.6 in calendar 1975 (table S-2). Imports from a total of 20 countries is currently dutiable at the most-favored natio rate. The current U.S. duty on imported sugar is cents per cwt. for refined sugar and cents per cwt. for 96 sugar, (raw value). There are 14 countries exporting small but significant quantities of sugar to the United States free-of-duty. Effective March 1, 1976, Belize, (British Hondurus) Guatemala and Mexico were added to the duty-free list. El Salvador, Nicaragua, Panama, and Thailand were removed from the current list of duty-free countries. U.S. CONSUMPTION U.S. Consumption and Deliveries Down Sharply in Early 1975 Per capita sugar consumption was cut to under 90 pounds in 1975, the lowest level since the sugarshort years of Consumption was 97 pounds in 1974 and 102 pounds in Most of Quarterly per capita consumption of refined sugar Quarter Pounds Pounds Pounds Pounds I II Ill IV Annual Preliminary. 2 Estimate. Source: Economic Research Service. the annual decline in 1975 was m the first and second quarters. Sugar deliveries for calendar 1975 totaled million tons (including Hawaii), down 1.25 million tons from 1974 (table S-4 and figure 2). Most of the drop occurred in the first half of 1975 (especially in the first quarter) when sugar prices were very high and buyers and users were working off previously purchased high-priced inventories. Beet sugar deliveries totaled 3.3 million tons in 1975, up 253,000 tons from 1974 because of increased availability of beet sugar. However, cane sugar deliveries of 6.8 million tons were off nearly a fifth from the 1974 pace. Consequently, beet sugar accounted for nearly a third of U.S. sugar deliveries in 1975, compared with only 27 percent in Consumer use has been the most stable component of sugar deliveries in recent years. Consumer-package deliveries were down about 7 percent in calendar 1975, while large commercial packages (50 pounds and more) were down 30 percent. Part of the decline in large package deliveries in 1975 may have reflected some stockpiling in late Bulk dry sugar deliveries were down 11 percent and liquid sugar deliveries were down 17 percent in calendar The sharp falloff in delivery for industrial uses was associated with a noticeable decline in sales of sugar-containing products in early Consumer-package deliveries accounted for about a fourth of total sugar deliveries in calendar Commercial deliveries to food and beverage manufacturers accounted for 60 percent. The beverage industry accounted for 22 percent of total sugar sales in 1975, while bakery and cereal manufacturers accounted for 13 percent. Other important uses were confectionery and processed foods (largely canned, bottled, and frozen fruits and vegetables and jams, jellies, and preserves) which each used 8 percent, and ice cream and similar products which used 5 percent. About 15 percent of total deliveries went to wholesalers which in turn delivered sugar to industrial users and to eating and drinking establishments. SSR 2, MAY

12 Table S-4-U.S. Beet and cane sugar deliveries to domestic users ,Month and Year Month and year ,000 1,000 1,000 1,000 1,000 short tons short tons short tons short tons short tons Beet 2 January February March April May June July August September October November December Annual 3,469 3,637 3,020 3,273 Cane 3 January February March April May June July August September October November December Annual... 7,943 8,012 8,253 6,750 Beet and Cane January February March... 1,052 1, April May , June... 1,093 1, July ,029 1,062 1,178 August... 1,160 1,202 1,136 1,000 September... 1,102 1,026 1, October , November December Annual 11,412 11,649 11,273 10,023 1 Raw value. 2 Deliveries In December excludes sales contracted for at a later date and Included In January and FebrJJary, Includes Hawaii. Source: Fruit and Vegetable Division, AMS, USDA. Sugar Deliveries to Bounce Back This Year First quarter 1976 domestic sugar deliveries of nearly 2.5 million tons were up about 40 percent (over 700,000 tons) from last year's low first quarter, but down 12 percent froni the more normal first quarter of 1974 (table S-5). Beet sugar and cane sugar deliveries shared about equally in the increase. Beet sugar deliveries of 895,000 tons in the first quarter reached the highest level in recent years and, if sustained throughout the year, the pace would set a new high. Cane sugar deliveries totaled nearly 1.6 million tons in the first quarter, up about 28 percent (343,000 tons) from the low first quarter of 1975 but down nearly 24 percent (500,000 tons) from the more normal first quarter of Cane sugar deliveries for calendar 1976 will probably top 1975 deliveries; with the amount of the increase mostly dependent on 1976 beet sugar and high-fructose com sirup deliveries. Total U.S. sugar deliveries for the most recent 12 consecutive months (April 1975 through March 1976) totaled 10.7 million tons. This would also 12 SSR-2, MAY 1976

13 U.S. SUGAR DELIVERIES AND PRICES RAW VALUE THOUS. TONs---~----~------$ PER CWT. 1, JAN MAR MAY JULY SEPT NOV 0 *NEW YORK SPOT. 0 TO DOMESTIC USERS. l>.preliminar Y. USDA NEG. ERS (4) Figure S-2 seem to be a reasonable estimate of total U.S. sugar deliveries for Calendar 1976 U.S. sugar deliveries are likely to range between 10.5 and 11 million tons, but could lag somewhat behind the present pace if high-fructose corn sirup deliveries increase substantially. U.S. Consumption to Increase in 1976 Per capita consumption of refined sugar this year is expected to recover from last year's low level and may range between 92 to 95 pounds. Consumption indicated by the most recent 12-consecutive-months' rate of U.S. sugar deliveries, would total 93.2 pounds per capita in A potentially important limit on per capita consumption this year will be prospective increases in high-fructose corn sirup use. primary distributors, which are less inclusive, show sugar exports of 147,000 tons in Refined sugar exports for the first 2 months this year totaled nearly 16,000 tons, up from 8,500 tons from the first 2 months of Most of our exports consisted of crystalline sugar, while exports of liquid sugar totaled only a third as large as a year ago. U.S. SUGAR EXPORTS!MIL. LBS.i SUGAR EXPORTS RUNNING AHEAD OF 1975 LEVEL Based on Census Bureau data, refined sugar exports in calendar 1975 exceeded 210,000 tons, up from 70,000 tons in 1974 (figure 3). Reports from Figure S SSR-2, MAY

14 Table S-5-Monthly, quarterly, and annual sugar prices and deliveries, Prlces 1 Deliveries, Period Acutal Year ago Change from I Previous month Change from Year \ ago Previous month Dollars per cwt. DoUars per cwt. Dollars 1,000 1,000 1,000 1,000 1,000 per cw t. short tons short tons short tons short tons short tons 1975: January February.... March st quarter , , , April... May June nd quarter , , July August September rd quarter ' , ,980 1,177 1, , October November December th quarter ' , , Annual ,273 6,750 10,023 1, : January February 6 March 6 1st quarter ' , , New York spot raw. 2 u.s. deliveries, raw value. 3 Deliveries In December, 1974 excludes some sales.contracted for at a later date which are included In January and February, 1975 deliveries. 4 1ncludes Hawaii. 5 Comparison with previous quarter. 6 Preliminary. Source: Fruit and Vegetables Division, AMS, USDA. January-February 1976 exports of crystalline sugar, which represent 95 percent of total U.S. exports, were nearly three times as large as for the same 1975 period. So far this year, Canada is receiving about 80 percent of U.S. crystalline sugar exports and over 90 percent of liquid sugar exports. APRIL 1 STOCKS DOWN FROM A YEAR AGO On January 1, 1976, total domestic distributor sugar stocks of 2.3 million tons were down nearly 300,000 tons from a year ago. This was the lowest January 1 level since the 2.0 million tons in On April 3, total U.S. distributor sugar stocks totaled 2.26 million tons-down 30,000 tons from the stock level of January 1, and about 24,000 tons from April 1, U.S. cane sugar refiners appear to be following a policy of keeping inventories as low as possible while keeping their distribution channels full. Prior to 1974, U.S. refineries frequently had as much as 1.2 million tons of raw sugar on hand. The newer policy suggests that refiners desire to keep their total sugar inventories below 600,000 tons. Thus, January 1 and April 1 stocks held by primary U.S. distributors, 1975 and Dlstrib uta rs January 1 April ,000 1,000 1,000 1,000 short tons short tons short tons short tons Cane sugar refiners: Raw sugar Refined sugar Total... 1, Refined beet sugar 1,406 1,596 1,421 1,705 Total u.s. dlstrlb utor stocks 2,587 2,289 2,283 2,259 1 Raw value. Source: Fruit and Vegetable Division, AMS, USDA. 14 SSR-2, MAY 1976

15 cane sugar refiners have succeeded in lowering their inventories to less than half former working levels (thereby freeing capital previously tied up in sugar inventories for other uses). The new "participating" contracts that refiners signed with a limited number of supplying countries could result in some increase in U.S. cane sugar inventories, depending on the terms of the contracts. Participating contracts generally specify that a final settlement will be based upon the price received upon sale of refined sugar. In this situation, there could be some incentive to carry larger inventories, if the importing refiners do not have to pay the selling countries until after the imported sugar has been refined and sold. In this instance, less financial capital of the participating refiner is tied up in inventories. U.S. beet sugar companies have seen their inventories increase about 165,000 tons since January 1 to total 1. 7 million tons on April 3. Even so, beet sugar companies are largely succeeding in their effort to restrain inventory buildup, despite processing the large beet sugar crop which is nearly a million tons larger than the level. SUGAR PRICE SITUATION 1976 Sugar Prices Holding Steady From an August 1975 price around $21 per cwt., the New York spot raw price has declined and stabilized within a range of $14.50-$17 since last October. Recent prices are about half the levels of a Selected raw and retail sugar price comparisons World World u.s. sugar Year and sugar price price u.s. month price New (New average stowed York York retail caribbean 1 basis spot) Cents per Cents per Cents per Cents per pound pound pound pound October November December : January February March Sugar stowed at greater Caribbean ports Including Brazil. Source: U.S. average retail, BLS; all other prices, Agricultural Marketing Service. year ago and the lowest since January 1974 (figure 4). The most recent 6-month average U.S. price (October 1975-March 1976) is $15.34 per cwt. The April 1976 price will likely average slightly higher. Wholesale refined sugar prices have not changed much in recent months following earlier downward movement of raw sug:;~r prices from their August peak. Wholesale refined cane sugar prices tend to closely follow raw prices, and recently, there has been very little lag between raw and refined price changes. Wholesale beet sugar prices hav'e exhibited a similar pattern. But aggressive marketing of the large beet sugar crop has eroded traditional cane sugar markets. And April 1 beet planting intentions suggest continued strong beet sugar competition in Refined sugar: Selected wholesale price comparisons' Year and Cane Sugar Beet Sugar month Chicago-~ Pacific I Bulk Northeast West Coast dry Cents per Cents per Cents per Cents per pound pound pound pound October November December : January Febbruary March These are basis prices In 100-pound paper bags, not delivered prices. To obtain delivered prices, add "Freight Prepays" deduct discounts and allowances. Source: Bulk dry beet sugar, BLS; all other prices, Agricultural Marketing services. U.S. retail sugar prices have followed declines in raw and wholesale sugar prices, and are expected to remain at or near current levels. Retail prices peaked last September, about a month after the price peak for raw and wholesale sugar. The average retail price for a 5-pound package declined from cents per pound in September to a recent monthly low of cents (figure 5). While refined sugar prices are now less than half the level of first quarter 1975, prices of sugarcontaining products have not changed much (table S-6). Slightly higher ice cream prices partly reflect higher milk prices. In other instances, higher manufacturing costs for such items as labor, rent, utilities, packaging, and transportation have helped to keep sugar-product prices from declining very much. SSR-2, MAY

16 U.S. RAW SUGAR PRICES* $PER CWT ,,,..... '' ~ ~,..., 1975 '... ' ,.:-!t! # ~t;, ~-..,. ~ '.,., $.,..,. ~ ' ~ / ! !_~, :: -..,, ! "......,, -' ~ _, OL---L-1--~1--~I j~--~'---~'--~1--~1--~1--~1--~ JAN MAR MAY JULY SEPT NOV *BULK SUGAR NEW YORK SPOT, DUTY PAID EQUIVALENT. llpreliminar Y. USDA Figure S4 NEG. ERS (4) ~ PE R. LB , U.S. SUGAR PRICES. ~ ' ~ \ U.S. Retail 0 l. v..! \ \\..._.I \... \~ - :;;;( I...,..._,_ ~ Domestic Raw \... U.~. Wholesale 0 I I I I I I I I I I I I I I J 1976 J I I I 1977 USDA BULK RAW SUGAR.. NEW YORK DUTY PAID EQUIVALENT 0 FIVE POUND PACKAGE BLS DATA 0 BULK, DRY BEET SUGAR, I. o. IJ. PLANT IN COLDRADQ... BLS DATA Figure S.O NEG. ERS (4) 16 SSR-2, MAY 1976

17 Year and month Table S~ugar and products containing caloric sweeteners: Retail prices, U.S. average, , and by month 1975 to date carbon- Lemon- Frult 1 Sugar, Bread, Cookies, Ice Choco- Choco- Cola a ted ade con- drink, Fruit Pears, grandu- white, cream cream, late late drink, fruit centrate, canned, cocktail, canned, Ia ted 1-pound sandwich, 'f2-9allon bar, syrup, drink, 72- frozen, 46- canned, 2'12 can 5-pounds 1-pound 1-ounce ounces ounces ounces 6-ounces ounces 303 can Peaches, Grape 2 Relish, canned, jelly, 10- sweet 2'1z can ounces Pickle, 12- ounces!ll ll r\, s: )::o -<......, ID a>..... Cents :i 1975 January February March April May June July August September October November December January February March Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents Cents n.a Plneapple-9rapefruit ounces through Vanilla cookies ounces. 5 9 month average. n.a.-not available. Source: Bureau of Labor Statistics. Cents Cents Cents

18 Recent Trends in Wholesale Refined Sugar Prices by Type and Point of Delivery Data are shown for the first time for wholesale refined sugar prices for 22 railroad delivery points and four truck delivery points (see tables S-12 and S-14). These series are by month for calendar It should be noted that the wholesale prices shown in tables S-12, S-13, and S-14 are lagged to allow for the movement of sugar through trade chanels. Further, wholesale prices shown are for the Friday nearest the 23rd of the previous month. Bulk dry sugar prices were lower than either bagged sugar (100 pounds per bag) or liquid sugar prices during , since transportation and handling charges have been lower for bulk dry sugar. In recent months bulk dry sugar and liquid sugar have sold (dry basis) at approximately the same price in the same area. In early 1973, liquid sugar received a slight premium over bagged sugar. Increasing supplies of high-fructose com sirup may have reduced or eliminated the liquid sugar price premium in recent months. The three industrial sugar price series followed essentially the same trend in the last 3 years. Industrial sugar prices were relatively low in early Prices peaked in late 1974, before they declined to a recent low of 18.7 cents to 20.5 cents per pound, depending upon delivery points and type of delivery. The most recent prices shown are about a nickle a pound higher than prices at the end of Market Spreads for Selected Markets Farm level prices of sugar averaged 16 cents per pound during calendar 1975, while the farmer's share of the retail price varied from 37 to 50 percent (see tables S-16 and S-19). From January to December 1975, the raw sugar mill spread decreased 67 percent. Raw sugar mill spreads in both Louisiana and Florida decreased significantly, starting about March The cane refiner's share of the retail dollar in the markets studied averaged 20 percent in 1975, even though the margins varied substantially throughout the year. Historically the distributor and retailer spread for cane sugar has averaged about 2 cents per pound.. However, in 1975 this spread increased in each city and averaged about 4 cents. Sugarbeet grower returns followed a pattern similar to sugarcane producer returns. Farm values decreased by about 25 percent within calendar The grower's share of the retail dollar held at roughly 50 percent. Both the wholesale spreads and the distributor and retailer spreads for beet sugar sold in Chicago and Los Angeles varied some from month to month with no apparent trend. Spread data are useful in determining growerprocessor/refiner-distributor shares. Data show who may benefit from particular price fluctuations. Spread data are not intended to measure profitability nor are they intended to measure the efficiency of each segment of the industry since costs are not shown. They only show who gets approximately what. Thus, spread data are useful in providing a view of the ever-changing price relationships among growers, processors/refiners, and distributors. Caution should be used in analyzing spread type data outside of its intended use. PRICE OUTLOOK World Raw Sugar Prices May Not Change Much in Coming Months Prevailing supply-demand conditions suggest that raw sugar prices may continue to fluctuate in a relatively narrow range until new crop prospects begin to significantly influence the market. 1975/ 76 world sugar output is up about 5 percent from the short crop, but carryover stocks continue small relative to use. Matching supply improvement, economic activity has turned up in the United States and current prospects promise further economic expansion worldwide. With small carryover stocks, the supply-demand balance is close, but not tight enough that sugar prices are under upward pressure. Even the price impacts of Philippine carryover stocks of sugar, apparently had been pretty well previously discounted in the market. Recent announcements of USSR purchases of some 200,000 to 400,000 tons of Philippine sugar had little impact on raw sugar prices. Factors Affecting Current Stable Sugar Price Situation The relative current stability in sugar prices springs from a number of offsetting fundamental factors and prospects of output increases and demand expansion. 1. Although the world crop is around 5 percent larger, global sugar use is expanding with lower sugar prices and the upturn in economic activity. Accordingly, a relatively close supply-demand balance prevails with relatively small stocks. 2. Much of the increase in world production was in traditional importing countries, including the United States. This puts less supply pressure on world markets. At 18 SSR-2, MAY 1976

19 Retail Sugar Prices are Higher in Smaller Stores A recent survey by the New York City Department of Consumer Affairs, released Jan uary 27, showed that a 5-lb. package of sugar recently cost $1.38 in New York City supermarkets and $1.59 in smaller grocery stores. Thus, lower prices may be found where volume, distribution, and buying permits some savings. The price in smaller stores averaged 15 percent higher. The U.S. average price in January was $1.29 per 5-lb. package, about a dime per package less then the New York City price, even in supermarkets. the same time, supplies available for export are believed adequate by the market. 3. Early season production prospects point to another substantial production gain, with output up perhaps another 3 to 5 million tons from and probably up more than the expected increase in consumption. 4. U.S. refiners are presently cautious about carrying large stocks of sugar. 5. Recently assigned "participating" contracts between U.S. refiners and some countries are considered "bearish" (price depressing) in the market. 6. Recent futures contracts for sugar suggests that the New York spot raw price may average in the 14 to 16 cents per pound range through the summer. 7. The U.S. com sweetener industry expects to about double its available supply of highfructose com sirup (HFCS) for delivery in calendar year Thus, overall, there appears little basis for much change in raw sugar prices, until there is a better fix on the size of the world sugar crop. But since this fall's crop processing campaigns are several months away, some seasonal strengthening. could develop this summer. The possible seasonal increase for U.S. raw prices could be limited by current and prospective large available supplies of competitively priced beet sugar, and anticipated growth in high-frcutose corn sirup deliveries. INDUSTRIAL MOLASSES Trade sources indicated that during the first quarter of 1976 industrial molasses prices remained at $53.00 per ton as constant demand, late sugar crops, and a limited molasses supply kept prices up (see table S-20). However, during the second quarter of 1976, a lessening of demand in the Buropean market and increased production in the Far East (Indonesia, Thailand, and the Philippines) may depress prices by as much as $4 per ton from the first quarter level. Note: Information concerning U.S. production, imports, and estimated uses of industrial molasses for calendar 1975 will be available in the September issue. CORN SWEETENERS Corn Sweetener Prices Continue to Decline Corn sweetener prices increased in the third quarter of 1975 reflecting the rise in com prices, but declined by December following the heavy harvest. Com sweetener prices continued to decline in the first quarter of this year, despite slightly higher com prices in the first quarter this year than in the last quarter of All com sweetener prices declined in first quarter The price of com sirup, Chicago, averaged $5 per cwt. (dry Basis) in the first quarter, down nearly $3 per cwt. from the last quarter of The decline in the New York price was similar. The reported New York dextrose price averaged $16.84 (dry basis) in this year's first quarter, down over $2 per cwt. from the last quarter of The first quarter dextrose price was 78 percent of the Northeast price of refined sugar ($21.46). Relative dextrose/sugar price relationships are apparently returning to the more normal situations before the sharp use in nutritive sweetener prices in The current situation appears to indicate dextrose cur-. rently has a considerable price advantage over sugar in the Northeast. The price of high-fructose com sirup (HFCS) in Decatur, Illinois averaged $15.14 per cwt. (dry basis) in the first quarter, a decrease of about $1.35 from the fourth quarter of The first quarter HFCS price was 83 percent of the Chicago-West beet sugar list price ($18.30), and about 87 percent of the reported bulk dry beet sugar price in the Chicago-West area ( $17.50). Trade sources indicate SSR-2, MAY

20 Corn sweetener price comparisons (dry basis) Year, quarter or month High- Corn sirup fructose Dextrose corn sirup Chicago I New York Decatur, New York Illinois Dollars Dollars Dollars Dollars per cwt. per cwt. per cwt. per cwt (') {') , {') <') {') Quarters: I II Ill IV Price data on high-fructose corn sirup not available before Source: Corn Sirup, Chicago, from BLS; all other data from Journal of Commerce HFCS is discounted 10 to 15 percent below sugar prices to encourage industrial food and beverage users to replace sugar with HFCS where technically possible. It costs about $2 per cwt. (dry basis) to move HFCS from Midwest com refineries to the Pacific Coast. Consequently, with bulk dry sugar (beet or cane) reportedly selling for about $18 per cwt. in the Pacific Coast, there is a limited price incentive there now for replacing sugar with HFCS. Trade sources indicate one U.S. HFCS firm may have decided to pull out of the California market temporarily and concentrate on midwestern and eastern markets. Com Refiners Byproduct Prices Holding Steady While com sweetener prices have declined recently, com refinery byproduct prices have essentially paralleled com prices, with one exception. Prices for com gluten feed Oargely fed to dairy cattle) and crude com oil, have changed little in the first quarter this year from the last quarter of However, the market for com gluten meal (largely fed to layers and broilers adding yellow color to egg yolks and broiler flesh) was very good. The reported Chicago price for com gluten meal (60 percent protein) was $251 per ton in the first quarter, up $12 per ton from last year's fourth quarter. Prevailing prices of com refinery byproducts are an important consideration for com sweetener prices. The value of byproducts usually accounts for $1 out of every $3 received by com wet millers for their primary product sales (starch, com sirup, high-fructose com sirup, dextrose, etc.). Selected price comparisons: Corn and corn refiner by-products Year or quarter By-products No.2 yellow Corn gluten Crude corn Feed j 1 Meal 2 Corn oll 3 Chicago, Illinois Decatur, Illinois Dollars Dollars Dollars Dollars per bu. per ton per ton per cwt g Quarters: 1975: I II Ill IV : I plant percent protein percent protein. 3 Tank car, f.o.b. Source: No. 2 yellow corn, Chicago Board of Trade; Corn gluten feed and meal, Feed Market News; Crude corn oil, National Provisioner. U.S. Grind Totaled Over 300 Million Bushels During Last 2 Years According to recent information from trade sources, the estimated annual U.S. corn grind totaled over 300 million bushels in both calendar years 1974 and The consensus is that the 1975 grind was slightly larger than the 1974 grind. The market for com starch declined about 10 to 15 percent in calendar 1975 from 1974, though com sweetener shipments increased. The decline in starch shipments came largely from less starch used in paper products. The paper industry's starch needs were affected by the economic recession last year. Early indications are that the paper industry will be using more starch this year. Com Sweetener Shipments Up in 1975 U.S. com sweetener shipments in calendar 1975 are now estimated to have totaled over 3 million tons (dry basis), up 11 percent from Com sirup shipments were nearly 2 million tons (dry 20 SSR-2, MAY 1976

21 basis), up 150,000 tons from Dextrose shipments totaled about 600,000 tons in 1975, down about 25,000 tons from the previous year. Highfructose com sirup (HFCS) shipments totaled about 500,000 tons (dry basis) last year, about double the 1974 level. Thus, domestic high-fructose com sirup shipments are growing rapidly but still totaled less than dextrose last year. The com sweetener industry anticipates that HFCS shipments will total million tons (dry basis) in calendar 1976, double the 1975 level. Current low refined sugar prices in the Chicago-West and Pacific Coast marketing territories could slow HFCS sales there. Dextrose shipments declined last year because sqllle facilities were being replaced or expanded. D~trose is the most expensive of the com sweeteners to produce, but once the large investment has been made in dextrose facilities, it will likely continue to be produced for all available markets. This should alleviate the concern of industrial users that com refiners might stop producing dextrose and convert output to HFCS. Regular com sirup shipments will probably increase some this year. Regular com sirup is the cheapest com sweetener to manufacture. It seems unlikely that HFCS is going to directly compete with regular com sirup in those uses where the latter can be used. Per Capita Corn Sweetener Consumption Up Sharply Based on information from trade sources, per capita consumption of com sweeteners is now estimated for regular com sirup, high-fructose corn sirup, and dextrose. Total per capita consumption of corn sweeteners was estimated at about 27 pounds in 1975, up nearly 10 pounds from 1970 (table S-7). Note: the estimates shown here differ from the per capita distribution levels shown in the August 1975 Sugar Market News and similar series contained in earlier editions of Sugar Reports. The difference stems largely from inclusions of ( 1) miscellaneous refinery products which contain, among other products, dried com sirup solids and maltadextrin, and (2) com sirup and dextrose deliveries for nonfood use. Half of the increase was contributed by regular corn sirup. Per capita com sirup consumption of 18 pounds last year was up over 5 pounds from Per capita consumption of HFCS of nearly 5 pounds in 1975 was up from negligible quantities in Per capita dextrose consumption last year was about the same as in 1970, though consumption levels were somewhat higher in the intervening years. It should be noted that per capita consumption of dextrose was less than HFCS in Table S-7-Corn sweeteners: Per capita U.S. consumption, Calendar year Corn sirup High- Regular I fructose Dextrose Total Pounds Pounds Pounds Pounds g_ g_ Dry basis. 2 Estimates for 1973, and 1974 plus the preliminary estimate for 1975 are thought to capture the recent trend In consumption for corn sweeteners. Estimates presented are not derived from annual production figures. Production data were last reported for Prellminary. Source: ERS, USDA. 1975, though total production of the latter was larger. This is explained because dextrose exports and nonfood use was much larger than for HFCS. For 1976, the corn sweetener industry expects per capita consumption of HFCS to about double. Per capita consumption of regular corn sirup is expected to increase slightly. The picture for dextrose is less clear, though industry capacity will be larger than last year. If dextrose shipments are priced competitively, dextrose consumption could increase slightly. HONEY Honey Production Declining; Imports Larger Domestic honey production in the United States has been trending downward since Honey production immediately prior to the decline was averaging approximately 250 million pounds annually. The most recent 5-year average production ( ) is just over 206 million pounds. Since 1971, honey imports have been moving into the United States in increasing quantities. Where the United States had been a net exporter of honey prior to 1966, it has become a net importer since that time. On January 29, the U.S. International Trade Commission announced it would conduct an investigation to determine if honey is "being 21

22 imported in such increased quantities as to be a substantial cause of serious injury or the threat thereof' to the domestic honey industry. The Commission held hearings in four locations across the country (Orlando, San Francisco, Kansas City, and Washington, D.C.) in order to obtain data and views from all interested parties. The International Trade Commission is currently compiling the results of questionnaires sent to producers, processors, and importers. Based on the results of the investigation, a report is being prepared for the Commission by the Commission staff. On or before June 29, the International Trade Commission will report its determination to the President. The Commission can find in the affirmative or negative. If the Commission finds in the affirmative, that is, that increased imports have caused serious injury or the threat thereof to the domestic honey industry, then the Commission must also recommend a remedy to the President. More information concerning the Commission's investigation and determination will be carried in a later report. Argentine Crop Stable Reports from Argentina concerning the 1976 honey crop-december 1975/March 1976-were originally pessimistic because of drought which postponed blossoming. But recent rains in January and February improved the nectar crop situation. Present indications are that 1976 Argentine crops will likely equal the 1975 crop of about 52 million pounds. The current U.S. price for imported Argentine honey is under the U.S. price. An increase in the export tax have temporary slowed Argentine sellers in exporting honey. The United States imported 12 million pounds of honey from Argentina in calendar 1975, double the level in So far this year, the United States has already imported 4.2 million pounds of honey from Argentina up 2.0 million pounds from the first 2 months of West Germany is normally the world's largest honey importer. Its honey imports totaled almost 112 million pounds in calendar 1975, compared with 92 million pounds in 1974 (normal average around 100 million pounds). Nevertheless, West German honey supplies are less than normal because of a small domestic crop, which is now estimated at just below 24 million pounds. SACCHARIN U.S. saccharin consumption last year was estimated to have totaled around 5 million pounds. Imports of saccharin totaled 3.09 million pounds in calendar 1975-down 10 percent from calendar U.S. production and stock changes accounted for the balance of consumption. Five million pounds of estimated saccharin consumption translates into 750,000 tons of sweetness. Saccharin is about 300 times as sweet as sugar, but contains no calories. Per capita consumption is about 7 pounds, sugar sweetness equivalent. About 90 percent of saccharin consumption is in consumer containers, soft drinks (including dry mix powders), and canned fruit. Saccharin prices have held fairly steady in recent months. Insoluble saccharin continues to sell for $1.98 per pound (1,000 pound lots); calcium saccharin, $2.18 per pound; and soluble saccharin $2.40 per pound. This is equivalent to about 0.6 cent per pound, sugar sweetness equivalent. COCOA AND CHOCOLATE World Supplies Tightening Confectionery is the third largest industrial of sugar after use in beverages, and cereal and bakery products. Use in confectionery accounted for over 8 percent total annual sugar deliveries in World cocoa bean production for (October-September) is expected to total 1.52 million metric tons, down fractionally from the crop. Early season prospects indicated a ().percent increase, but the harvest was disappointing in the West African countries of Ghana, Nigeria, Ivory Coast, Cameroon, and Togo. Estimates also were down for Dominican Republic and Ecuador. Nevertheless, world production and consumption are expected to be in near balance for calendar 1976, compared with an 88,000 ton increase in inventories in calendar Cocoa Bean Imports Up-Cocoa Product Imports Down U.S. cocoa bean imports totaled 522 million pounds last year, up 5 percent from Five-percent larger world supplies and a 25-percent decline in cocoa prices stimulated larger bean imports. U.S. imports of semiprocessed cocoa and chocolate products totaled 242 million pounds (bean equivalent-be) in 1975, down 4 percent from the preceding year. Unsweetened chocolate imports were down signficantly. Cocoa butter imports were down moderately and 1975 cocoa powder imports matched the previous year's level. Annual U.S. Cocoa Grind Down-Last Quarter and First Quarter Grind Up Annual U.S. grindings totaled 455 million pounds in calendar 1975, down 10 percent from 22

23 grindings and the lowest since Moreover, the 1975 grind was unseasonal; each quarter's grind was higher than the preceding quarter. Typically, the first and fourth quarter grind is larger than the second and third quarter grind. This year's first quarter grind of 134 million pounds continued the strength shown in late Per Capita Cocoa Consumption Down U.S. per capita cocoa consumption totaled 3.3 pounds (bean equivalent) last year, down 19 percent from 1974 and continuing the downtrend that began in A sharp drop in the domestic grind, as well as overall declines in imports of semiproceased and consumer products contributed to lower consumption. Cocoa Prices Have Begun to Increase Recently With the tightening world supply/consumption situation, cocoa prices have been rising recently. Late April prices for cocoa beans (New York Spot -"Accra") were around 95 cents per pound, up from a first-quarter average of 76 cents per pound. Correspondingly, the cocoa butter price (New York spot) was about $1.90 per pound, up sharply from $1.50 for the first quarter. In addition, the recent weakening of the British pound has encouraged London traders to move into commodities (including cocoa) to protect their financial resources. Retail prices of the 1-oz. chocolate bar and 16 oz. can of chocolate sirup have changed very little during the past 6 months (October/March), and it may be some time before retail prices increase very much. Outlook for Rest of 1976 With the world supply I consumption situation tightening, cocoa bean prices are likely to continue firm and may increase further through the sum- Cocoa and chocolate: Selected comparisons for U.S. imports, grind, and consumption (bean equivalent) U.S. Imports: Item MiUion Million Million Million pounds pounds pounds pounds Cocoa beans Minus reexports Net Imports. ~ SemI processed 2 Unsweetened chocolate Cocoa butter Unsweetened cocoa Other products Total Consumer products Total Imports u.s. grind u.s. consumption Per capita (pounds) Preliminary. 2 Reexports of semlprocessed and consumer products are relatively Insignificant. Source: Bureau of Census. mer. The movement for the next several months will likely depend to a large extent upon expectations and early indic~tions concerning the size of the fall crop and the rate of cocoa grindings in consuming nations. Most West African cocoa is usually contracted for 6 to 12 months in advance; therefore, the higher cocoa prices now prevailing will not likely have an immediate adverse effect on U.S. cocoa bean imports, grind, or consumption. SSR 2, MAY

24 Table S-8-World centrifugal sugar production in specified countries, 1971/72 to 1975/76 1 Region and country 1971/ / / / /76 2 1,000 short tonsraw value 1,000 Bhorl tonsraw value 1,000 Bhort tonsraw value 1,000 short tonsraw value 1,000 Bhort tonsraw value North America: United States: Mainland cane Hawaii.... Puerto Rico.. Total U.S. cane Sugarbeets..... Total U.S. 1,206 1, ,623 3,512 6,135 1,620 1, ,004 3,663 6,667 1,420 1, ,751 3,197 5,948 1,470 1, ,875 3,006 5,881 1,734 1, ,174 3,840 7,014 Caribbean: Cuba..... Dominican Republic..... Other countries.. Total Caribbean.. 4,837 1,256 1,015 7,108 5,787 1, ,003 6,393 1, ,682 6,063 1, ,253 6,283 1, ,707 Other Mainland: Mexico.. Canada... Central America..... Total Other Mainland , ,085 4,027 3, ,092 4,306 3, ,269 4,520 3, ,463 4,578 3, ,583 4,728 Total North Amercla 3 17,270 18,976 19,150 18,712 20,448 South America: Argentina Brazil... Colombia. Peru.. Venezuela... Other countries,.... Total South Amerlca 3 1,092 6, , ,085 10,860 1,426 6, , ,031 11,735 1,819 7, , ,120 13,235 1,689 8,157 1,001 1, ,323 13,805 1,533 7,385 1,080 1, ,439 13,090 Europe: Western Europe: E.C.-9 Belgium-Luxemburg. Denmark France.. West Germany. Ireland Italy... Netherlands United Kingdom Total E.~C ,530 2, , ,300 11, ,290 2, , ,062 10, ,475 2, , ,154 10, ,246 2, , , ,474 2,g ,533 1, ,322 Non E.C. Austria.... Greece. Spain Sweden... Other countries Total Non E.C , , , , , ,319 Total Western Europe 3 13,222 12,579 12,g64 11,712 13,641 Eastern Europe: Czechoslovakia East Germany. Poland Romania... Yugoslavia.... Other countries. Total Eastern Europe , , , , , , , , ,14g ,704 Total Europe 3 18,008 17,993 18,594 17,007 19,345 U.S.S.R.. 8,813 8,984 10,549 8,521 8,818 See footnotes at end of table. 24 SSR 2, MAY 1976

25 Tabla S B-World centrifugal sugar production in specified countries, 1971/72 to 1975/76 1 -Continuad Region and country 1971/ / / / (76 2 1,000 short tomraw oolue 1,000 short tomraw oolue 1,000 1hort tomraw oolue 1,000 hort tomraw oolue 1,000 hort ton. raw oolue Africa: Egypt,,,,, Mauritius Mozambique South Africa Other countries Total Africa 3, ,056 2,076 5, ,111 2,083 6, ,909 2,276 6, ,076 2,391 6, ,072 2,620 6,192 Asia: China-Peoples Republic China-Rep, of Taiwan, India.,,,, Indonesia,, Iran,,,,, Japan, Pakistan, Philippines,,, Thailand, Turkey Other countries Total Asla 3,,,, 2, , , , ,800 2, ,040 98i , ,129 2, ,456 1, ,272 1, ,614 2, ,614 1, ,717 1, ,381 2, ,063 1, ,831 1,424 1, ,942 Oceania: Australia. FIJI islands, Total. Oceanla , ,391 3, ,428 2, ,309 3, ,649 3, ,560 TOTAL WORLD 3,,,, 77,818 83,247 88,552 86,410 90,395 1 Crop year basis. All campaigns which begin not earlier than May of one year nor later than April of the foilowlng year, are Included In the same crop year. Each country's total annual production Is credited to the May/APril year In which sugar production began; 2 Preliminary. 3 May not add due to rounding. E.C.-Economic Community. Source: Foreign Agricultural Circular, FAS, USDA. SSR 2, MAY

26 ... Table S-9-Domestic sugar crops: Production, price per ton, and value of production, State or a rea Production Price per ton Value of production I I I I.I I 1,000 1,000 1,000 Dollars' Dollars Dollars 1,000 1,000 1,000 tons tons tons dollars dollars dollars CANE Florida... 8,340 7,598 9, , , ,794 Louisiana... 7,023 7,048 7, , , ,992 Texas , ,242 36,036 18,012 Total Mainland ,997 15,570 18, , , ,798 Hawall ,830 9,242 10, N.A. 144, ,085 N.A. BEET TOTAL U.S. CANE 25,827 24,812 28,499 N.A. N.A. N.A. 477,562 1,205,924 N.p.. Michigan... 1,524 1,364 1, N.A. 46,482 64,790 N.A. Ohio... ~ N.A. 11,138 23,563 N.A. East North Central... 1,899 1,883 2, N.A. 57,620 88,353 N.A. Minnesota... 2,169 2,116 2, N.A. 55,960 86,544 N.A. North Dakota... 1,284 1,562 1, N.A. 33,127 60,449 N.A. Red River Valley... 3,453 3,678 4, N.A. 89, ,993 N.A. Kansas N.A. 20,268 28,294 N.A. Nebraska ,482 1,382 1, N.A. 53,352 69,376 N.A. Other North Central... 2,087 1,984 2, N.A. 73,620 97,670 N.A. Total North Central. 7,439 7,545 9, N.A. 220, ,016 N.A. Washington... 2,476 1,554 2, N.A. 80,222 70,707 N.A. Oregon N.A. 15,980 10,653 N.A. Idaho ,921 1,845 2, N.A. 101,651 81,365 N.A. Montana N.A. 31,347 43,050 N.A. Wyoming , N.A. 36,150 51,706 N.A. Total Northwest.... 7,742 5,469 7, N.A. 265, ,481 N.A. Arizona N.A. 4,924 11,881 N.A. New Mexico N.A N.A. Texas N.A. 12,520 14,798 N.A. Utah N.A. 11,206 13,468 N.A. Colorado ,851 2,261 2, N.A. 66, ,728 N.A. Other Southwest... 2,871 3,161 3, N.A. 95, ,213 N.A. California... 6,447 5,948 8, N.A. 144, ,857 N.A. Total Southwest.... 9,318 9,109 12, N.A. 239, ,070 N.A. Total West... 17,060 14,578 19, N.A. 505, ,551 N.A. TOTAL U.S. BEET.. 24,499 22,123 29, ,661 1,035, ,998 'Includes cane for seed. 2 Price per ton and value of production and derived. N.A.-Not available. Source: crop Production, SRS and Crop Values, SRS. 26 SSR-2, MAY 1976

27 Table S-10-Cane and beet sugar act payments by state and area, 1973 and 1974 crops1 State or area Per ton Dollars 1973 I Total 1,000 dollars Per ton Dollars 1974 I Total 1, 000 dollars Cane Florida Louisiana Texas Total Mainland Hawaii ,773 7, ,203 9, ,477 8,478 1,064 17,019 8,646 TOTAL U.S. CANE 25,713 25,665 Beet Michigan OhiO East North Central , , ,012 1,182 4,194 Minnesota North Dakota Red River Valley , , ,423 3,323 7,746 Kansas Nebraska Other North Central Total North Central ,128 3,175 4,303 15, ,230 3,073 4,303 16,243 Washington Oregon Idaho Montana Wyoming Total Northwest ,171 1,908 2,189 16, , ,905 1,838 2,257 11,731 Arlzona 2 New Mexico Texas utah Colorado Other Southwest Callfornla 2. Total Southwest Total West ,915 5,869 12,722 15,591 34, n.a ,008 6,730 11,718 18,448 30,179 TOTAL U.S. BEET , ,422 1 Excludes abandonment and deficiency payments. 2 Relates to year harvested; Includes some acreage carried over to following spring. 3 Evaluated at 1973 crop year act payment. N.A.-Not available. Source: Crop Values, SRS, USDA. Hawaii, Fruit and Vegetable Division, AMS, USDA. SSR-2, MAY

28 Country Table S-11-U.S. annual imports by country, Calendar year I I I I 1,000 short tons, raw ualue Western Hemisphere: Caribbean Islands: Bahamas Dominican Republic French West Indies 63 Haiti West Indies Netherlands Antlles Total'... 1, ,119 1,023 Central America: Belize (British Honduras) Costa Rica El Salvador Guatemala Hondu~s Nicaragua Panama Total' North America: Canada 46 Mexico Total' South America: Argentina Brazil Colombia Ecuador Peru Venezuela Other Total'. 1,389 1,420 1,359 1, Total Western Hemisphere'... 3,405 3,406 3,195 3,629 2,281 Eastern Hemisphere: Australia China, Republic of Fiji Islands India Korea.. 11 Malagasy, Republic of Malawi Mauritius Mazambique 0 15 South Africa Swaziland Thailand Other Total Eastern Hemisphere exeluding Philippines' ,179 Philippines... 1,592 1,432 1,454 1, Total Eastern Hemisphere' 0 2,180 2,053 2,134 2,141 1,592 Total u.s. Imports'.. 5,587 5,459 5,329 5,770 3,874 1 May not add due to rounding. Source: Fruit and Vegetable Division, AMS, USDA. 28 SSR-2, MAY 1976

29 TABLE S - 12 BULK DRY SUGAR: WHOLESALE PRICES, SELECTED CITIES, BY MONTHS, / CITY : JAN : FEB : MAR : APR : HAY : JUNE : JULY : AUG : SEPT : OCT : NOV : DEC CENTS PER POUND ATLANTA, GA. RAL TIMORE, HO. 60S TON, MASS. BUFFALO, N.Y. CHICAGO, ILL. - RAIL CHICAGO, ILL, - TRUCK CINCINNATI, OHIO CLEVELAND, OHIO DALLAS, TEX. DETRO IT, MICH. HOUSTON, TEX. KANSAS CITY, KANS.-MO.- RAIL KANSAS CITY, KANS.-MO.- TRUCK LOS ANGELES, CALIF. MILWAUKEE, WIS, - RAIL MILWAUKEE, WIS. - TRUCK MINNEAPOLIS-ST. PAUL, MINN. -RAIL MINNEAPOLIS-ST. PAUL, MINN. - TRUCK NEW YORK, N.Y. PHILADELPHIA, PA. PITTSBURGH, PA, ST. LOUIS, MO. - RAIL ST. LOUIS, MO. - TRUCK SAN DIEGO, CALIF. SAN FRANCISCO-OAKLAND, CALIF, SEATTLE, WASH. WASHINGTON, D.C ' ' , : ' u.s U.9 u.e U u.s 11.5 u U u. 7 U.9 U u u.s u.e u.s u u U.5 u. 7 U.6 ll.6 u.8 ll R 11.6 u.s 11.6 n.e u.s u a u.s ATLANTA, GA. RAL TIMORE, MO. BOSTON, MASS. BUFFALO, N.Y. CHICAGO, ILL. - RAIL CHICAGO, ILL. - TRUCK CINCINNATI, OHIO CLEVELAND, OHIO DALLAS, TEX. DETROIT, MICH. HOUSTON, TEX. KANSAS CITY, KANS.-MO.- RAIL KANSAS CITY, KANS.-MO.- TRUCK LOS ANGELES, CALIF. MILWAUKEE, WIS. - RAIL MILWAUKEE, WIS. - TRUCK MINNEAPOLIS-ST. PAUL, MINN, - RAIL MINNEAPOLIS-ST. PAUL, MINN. - TRUCK NEW YORK, N. Y PHILADELPHIA, PA, PITTSBURGH, PA. ST. LOUIS, HO. - RAIL ST. LOUIS, HO. - TRUCK SAN DIEGO, CALIF. SAN FRANCISCO-OAKLAND, CALIF. SEATTLE, WASH, WASHINGTON, D.C ' : 13.Q H H ' "t C? a H 't4.0 'o B ~0.7 H.O ATLANTA, GA. BAlTIMORE, MD, BOSTON, MASS. BUFFALO, N. Y CHICAGO, ILL, - RAIL CHICAGO, ILL. - TRUCK CINCINNATI, OHIO CLEVELAND, OH I 0 DALLAS, TEX. DETRO IT, MICH. HOUSTON, TEX, KANSAS CITY, KANS.-MO.- RAIL KANSAS CITY, KANS.-MO.- TRUCK LOS ANGELES, CALIF, MILWAUKEE, WIS. - RAIL MILWAUKEE, WIS. - TRUCK MINNEAPOLIS-ST. PAUL, HINN. - RAIL MINNEAPOLIS-ST. PAUL, MINN. - TRUCK NEW YORK. N.Y. PHILADELPHIA, PA. PITTSBURGH, PA. ST. LOUIS, MO. -RAIL ST. LOUIS, MO.- TRUCK SAN DIEGO, CALIF, SAN FRANCISCO-OAKLAND, CALIF. SEATTH, WASH. WASH! NGTON, D. C. : & ' ' 54.6 ' ~.7 so.o : 51t ~-~ ~a ~ ~8.1 ~ ~4.0 'o 'o ~ 'o7.o ~ ~ / THE WHOLESALE PRICE IS THE PRICE AT WHICH REFINED SUGAR IS OFFERED TO RETAILERS AND OTHER MAJOR USERS. THE ACTUAL DELIVERED PRICE WHICH INCLUDES FREIGHT PREPAYS' MAY BE DIFFERENT FROM THE QUOTED PRICE DUE TO DISCOUNTS AND ALLOWANCES. THE WHOLESALE PRICE IS LAGGED TO ALLOW FOR THE MOVEMENT OF SUGARS THROUGH TRADE CHANNELS. WHOLESALE PRICE SHOWN IS FOR THE FRIDAY NEAREST THE 23RD OF THE PREVIOUS MONTH. 3~ o , j! a.o a.o ~o.a SSA 2. MAY

30 TABLE S -13 GRANULATED SUGAR: WHOLESALE PRICES, 100 POUND PAPER BAGS, SELECTED CITIES, BY MONTHS, / CITY : JAN : FFB : MAR : APR : MAY JUNE : JULY I AUG : SEPT I OCT : NOV I DEC CENTS PER POUND AlLANTA, GA. BALTIMORE, MO. BOSTON, MASS, BUFFALO, N.Y. CHICAGO, ILL. CINCINNATI, OHIO CLEVELAND, OHIO DALlAS, TEX DETRO IT, HI CH. HOUSTON, TEX. KANSAS CITY, KANS.-MO. LOS ANGELES, CALIF. MILWAUKEE, WIS. MINNEAPOLIS-ST. PAUL, HINN, NEW YORK, N.Y. PHILADELPHIA, PA. PITTSBURGH, PA. ST. LOUIS, MO.-ILL. SAN DIEGO, CALIF. SAN FRANCISCO-OAKLAND, CALIF. SEATTLE, WASH. WASHINGTON, D.C u.s I I 11o6 11.~ 11.~ U.8 u.s u ~ u. 7 u. 7 u.~ U.lo U u. 7 U.7 u u U u. 7 u u. 7 u.s u.s 12.8 U.9 u.s u.s u.s u.s u.s u.s U , o ATLANTA, GA. BAL TIMOREo MO. BOSTON, MASS. BUFFALO, N.Y. CHICAGO, ILL. CINCINNATI, OHIO CLEVELAND, OHIO DALLAS, TEX. DETROIT, HICH. HOUSTON, TEX. KANSAS CITY, KANS.-MD. LOS ANGELES, CALIF. MILWAUKEE, WIS. MINNEAPOLIS-ST. PAUL, MINN. NEW YORK, N.Y. PHILADELPHIA, PA. PITTSBURGH, PA. ST. LOUIS, MO.-ILL. SAN DIEGO, CALIF. SAN FRANCISCO-OAKlAND, CALIF. SEATTlE, WASH. WASHINGTON, D.C ' 15./o t z ' /o 15.4 ' zo S l.lt ~ S S S.1 2S S S.2 2S.6 2S. 6 2S.1 2S.1 2S.1 2S S S l.S 31.S S HoD ATLANTA, GA. BAlTIMORE, MD. BOSTON, MASS. BUFFALO, N.Y. CHICAGO, Ill. CINCINNATI, OHIO CLEVElAND, OHIO DALLAS, TEX. DETROIT, MICH. HOUSTON, TEX. KANSAS CITY, KANS.-MD. los ANGELES, CAliF. MilWAUKEE, WIS. MINNEAPOLIS-ST. PAUlo MINN. NEW YORK, N.Y. PHILADELPHIA, PA. PITTSBURGH, PA. ST. LOUIS, MO.-Ill. SAN DIEGO, CAliF. SAN FRANC ISCO-OAKlANO, CAliF. SEATTLE, WASH. WASHINGTON, D.C I : : 54.~ 50.3 : 54.R 54.B ' o 57.0 I 54.6 ' /o T , t /o,O , R A S / THE WHOLESALE PRICE IS THE PRICE AT WHICH kefined SUGAR IS OFFEkED TO RETAilERS ANn OTHER MAJOR USERS. THE ACTUAl DELIVERED PRICE WHICH INCLUDES 'FREIGHT PREPAYS MAY BE DIFFERENT FROM THE QUOTED PRICE DUE TO DISCOUNTS ANO AllOWANCES. THE WHOLESALE PRICE IS LAGGED TO AllOW FOR THE MOVEMENT OF SUGARS THROUGH TRADE CHANNELS. WHOLESALE PRICE SHOWN IS FOR THE FRIDAY NEAREST THE 23RD OF THE PREVIOUS MONTH. 30 SSR-2, MAY 1976

31 TABLES -14 LIQUID SUGAR (SUCROSE and INVERTI: WHOLESALE PRICES, SELECTED CITIES, BY MONTHS, CITY : JAN : FEB : MAR : APR : HAY : JUNE : JULY : AUG : SEPT : OCT : NOV : DEC 1971 ATLANTA, GA. BAL TIMDRE, MD. BOSTON, MASS. BUFFALO, No Y CHICAGO, ILL. CINCINNAT It OHIO CLEVELAND, OHIO DALLAS, TEX DETRD!To MICH. HOUSTON, TEX, KANSAS CITY, KANS,-MQ, LOS ANGELES, CALIF, MilWAUKEE, WI S, MINNEAPOLIS-ST, PAULo MINN. NEW YORK, N. y, PHILADELPHIA, P.l, PITTSBURGH, PA, ST. LOUIS, MO.-ILL, SAN DIEGO, CALIF, SAN FRANC ISCD-OAKLANOo CALIF, SEATTLE, WASH, WASHINGTON, D.C ATLANTA, Ga. BALTIMORE, MD, BOSTON, MASS, BUFFALO, N. Y, CHICAGO, Ill. CINCINNATI, OHIO CLEVELAND, OHIO DALLAS, TEX. DETRO IT, MICH. HOUSTON, TEX. KANSAS CITY, KANS,-MO, LOS ANGELES, CALIF, MilWAUKEE, WIS. MINNEAPOLIS-ST, PAUlo MINN. NEW YORK, N.Y. PHILADELPHIA, PA. PITTSBURGH, PA, ST. LOUIS, MO.-ILL. SAN DIEGO, CALIF. SAN FRANCISCO-OAKLAND, CALIF. SEATTLE, WASH, WASHINGTON, Q, C ATLANTA, GA. BAL TIMOR Eo MD, BOSTON, MASS. BUFFALO, N.Y. CHICAGO, ILL. CINCINNATI, OHIO CLEVELAND, OHIO DALLAS, TEX. DETROIT, MICH. HOUSTON, TEX. KANSAS CITY, KANS.-MO. LOS ANGELES, CALIF. MilWAUKEE, WIS. MINNEAPOLIS-ST. PAUlo MINN. NEW YORKe N.Y. PHILADELPHIA, PA. PITTSBURGH, PA, ST, LOUIS, MO.-ILL, AN 'DIEGO, CALIF, AN FRANC ISCD-OAKLANO, CALIF, EATTLE, WASH. WASHINGTON, D.C. ~ u.o : : 11.3 ll.3 ll I o'l 15.o , s 51t S6.6 S S4.6 so , so S CENTS PER POUND U.3 ll.3 u. 1 12, S S S.2 1S S S S S3.0 S B.1 53~0 4B.l S u.s u.s u.s U / THE WHOLESALE PRICE IS THE PRICE AT WHICH REFINED SUGAR IS OFFERED TO RETAILERS AND OTHER MAJOR USERS, THE ACTUAL DELIVERED PRICE WHICH INClUDES 'freight PREPAYS MAY BE DIFFERENT FROM THE QUOTED PRICE DUE TO DISCOUNTS AND ALLOWANCES, THE WHOLESALE PRICE IS LAGGED TO ALLOW FOR THE MOVEMENT OF SUGARS THROUGH TRADE CHANNELS, WHOLESALE PRICE SHOWN IS FOR THE FR1DAY NEAREST THE 23RD OF THE PREVIOUS MONTH, 2/ DRY BASIS, ll. 7 u.o llo B 12.8 U n.o Uo B B S S So u.s lo So o o 14.5 lo4.4 44,0 lo ,6 43, lo zo.o ,/o i oS SSR-2, MAY

32 Table S-15-0ffshore cane sugar sold at retail in New York: Prices and marketing spreads, annual1973 and by months 1974 and 1975 Marketing spreads as a per- Prices Marketing spreads cents of the retail price Year and month Distributors Raw sugar' Wholesale:>, Retail Wholesale Distributors Wholesale and retail and retailers spread ers spread Cents per Cents per Cents per Cents per Cents per Percent Percent pound pound pound pound pound 1973 weighted average January February March April May June July August September October November December Weighted average January February March April May June July August September October November December Weighted average Adjusted for refining loss. 2 These are offerings of sugar distributors. Delivered prices may differ from these figures. Farm value for the middle of the previous month. Raw cane sugar price for the Friday nearest the 16th of the previous month. Wholesale price for the Friday nearest the 23rd of the previous month. Retail price for the first consecutive Tuesday, Wednesday and Thrusday of each month. Source: Economic Research Service. 32 SSR 2, MAY 1976

33 Table S-16-Beet sugar sold at retail in Chicago, Illinois: Prices and marketing spreads, annual1973 and by months 1974 and 1975 Prices Marketing spreads Farm value and marketing spreads as a percent of the retail price Year and month Farm value United Wholesale' Retail States Cents per Cents per Cents per pound pound pound Whole- Distributors Whole- Distributors Farm sale and retailsale and retailers value spread ers spread Cents per Cents per Percent Percent Percent pound pound 1973 Weighted average January February March April May June July August September... 18; October November December Weighted average January February March April May June July August September October November December Weighted average These are offerings of sugar distributors. Delivered prices may differ from these figures. Farm value for the middle of the previous month. Raw cane sugar price for the Friday nearest the 16th of the previous month. Wholesale price for the Friday nearest the 23rd of the previous month. Retail price for the first consecutive Tuesday, Wednesday and Thursday of each month. Source: Economic Research Service. SSR-2, MAY

34 - & 6.7 ~ Ul Ul :1J,(, s: }> <,_.... "' a> Table S-17-Louisiana cane sugar sold at retail in Chicago, Illinois: Prices and marketing spreads, annual 1973 and by months 1974 and 1975 Farm value and marketing spreads as a Prices Marketing spreads percent of the retail price Year and month Raw Distribu- Farm Raw 1 Whole- Farm to Whole- Distribu- Farm sugar Whole- tors and value sugar sale 2 Retail raw sugar sale tors and value mill sale retailers mill retailers spread spread spread weighted average Cents per Cents per Cents per Cents per Cents per Cents per Cents per Percent Percent Percent Percent pound pound pound pound pound pound pound January February March April May June July August September : October November December Weighted average January February March April May June..., July August September October November December Weighted average Adjusted for refining loss. 2 These are offerings of sugar distributors. Delivered prices may differ from these figures. Farm value for the middle of the previous month. Raw can sugar price for the Friday nearest the 16th of the previous month. Wholesale price for the Friday nearest the 23rd of the previous month. Retail price for the first consecutive Tuesday, Wedenesday, and Thursday of each month. Source: Economic Research Service.

35 Table S-18-Fiorida cane sugar sold at retail in Atlanta, Georgia: Prices and marketing Spreads, annual1973 and by months 1974 and 1975 Farm value and marketing spreads as a Prices Marketing spreads percent of the retail price Year and month Raw Farm Raw 1 Whole- Farm to Whole- Distribu- Farm sugar Whole- Distribuvalue sugar sale 2 Retail raw sugar sale tors and value mill sale tors and mill retailers spread spread retailers Cents per Cents per Cents per Cents per Cents per Cents per Cents per Percent Percent Percent Percent pound pound pound pound pound pound pound 1973 weighted average 0 6_ January February March April ,2 9.2 May June July August September October November December Weighted average Ul Ul ;lj "' s: :I> <... \0... "'!if 1975 January February March.., April May June , July August September October November , December, Weighted average Adjusted for refining loss. 1 These are offerings of sugar distributors. Delivered prices may differ from these figures. Farm value for the middle of the previous month. Raw cane sugar price for the Friday nearest the 16th of the previous month. Wholesale price for the Friday nearest the 23rd of the previous month. Retail price for the first consecutive Tuesday, Wednesday, and Thursady of each month. Source: Economic Research Service.

36 Table S-19-Beet sugar sold at retail in Los Angeles, California: Prices and marketing spreads, annual 1973 and by months 1974 and 1975 Farm value and marketing spread as a Prices Marketing spreads percent of the retail price Year and month Farm value Distributors Distributors United Wholesale 1 Retail Wholesale and Farm Wholesale and States retailers value spread retailers spreads Cents per Cents per Cents per Cents per Cents per Percent Percent Percent pound pound pound pound pound 1973 weighted average January February March April May June July August September October November December Weighted average January February March April May June July August September October November December Weighted average These are offerings of sugar distributors. Delivered prices nearest the 23rd of the previous month. Retail price for the first may differ from these figures. Farm value for the middle of the consecutive Tuesday, Wednesday and Thursday of each month. previous month. Raw cane sugar price for the Friday nearest the 16th of the previous month. Wholesale price for the Friday Source: Economic Research Service. Table S-20 Molasses: Blackstrap, beet, citrus, and corn (hydrol), annual average and first quarter average 1976, price f.o.b. tank car or tank truck' Year Citrus Blackstrap Beet molasses molasses New Orleans I Baltimore I California Colo., Mont., I Ore., Utah, Ports and Wyom. and Idaho Florida DoUars Dollars Dollars Dollars Dollars Dollars per ton per ton per ton per ton per ton per ton Corn molasses Chicago Dollars per ton Quarter: I II Ill IV I Per ton prices are based on 171 gallons for blackstrap, beet and corn molasses and on 175 gallons for citrus molasses. Prices represent sales f.o.b. terminal to the general feed trade and do not Include sales made under various pricing arrangements above or below prices generally available to the ultimate user. Ton- 2,000 lbs; Gallon- u.s. gallon. 2 Preliminary. 3 Estimated. Molasses Market News, Annual Summary, AMS, U.S.D.A. Denver, Colorado, various Issues. Molasses Market News, Weekly, various Issues, 1975 and SSR-2, MAY 1976

37 MARKET NEW.., Principal contributors: James R. Thorpe and Robert F. Sweitzer Fruit and Vegetable Division Agricultural Marketing Service SUGAR MARKET HIGHLIGHTS Continental United States Deliveries March-Preliminary data for March 1976 show a 41-percent increase in sugar deliveries from March Deliveries increased by 29 percent compared with February By State-In the first 2 months of the year marking the U.S. first 200 years, Pennsylvania came close (they may ask for a recount) to the magic 1, 776 thousand cwt. delivery figure. New York's deliveries were 1,976 thousand cwt., exceeded only by the 3,358 thousand cwt. delivered to Illinois and the 2,705 thousand cwt. delivered to California. Inventories End-March-April 3 inventories of all primary sugar distributors were down 7.5 percent from February 29 holdings, but were 4.4 percent above stocks held at the end of March Table- 1-Sugar supply and disposition by primary distributors, January-February 1976 Refiners Item Beet Importers Mainland cane processors processors 1 Raw Refined I Net total (1) (2) (3) (4) (5) (6) (7) (Short tons, raw ualue) SUPPLY Inventory Jan. 1, ,595, , , ,174 2,711,600 Production and movement Received direct-consumption sugar... 23,078 1,460 24,538 Produced from beets or cane 856, ,649 25,016 Less deliveries to refiners 286, ,057,004 Receipts of raws by refiners ,087 Less raws melted... 1,013, ,117 Refined from raws melted 1,007,846 1,007,846 Adjustments ,138-8,174-23,895 Sub-total 855,919 23, ,486-20,239 1,001,132 2,035,376 Net total supply... 2,451,730 23, , ,361 1,250,306 4,746,976 DISPOSITION Distribution for Continentia! consumption ,327 23,078 2,330 1, ,599 1,534,290 Export 2, ,956 12,025 Livestock feed. Alcohol Sub-total ,290 23,078 2,436 1, ,555 1,546,315 Inventory February 29, ,906, , , ,751 3,200,661 Total Distribution and Inventory... 2,451,730 23, , ,361 1,250,306 4,746,976 1 Establishments that acquire no raw sugar from others for ~eflnlng. Processor-refiners are Included with refiners. Production less deliveries of raw sugar to refiners. 3 Includes 2?6,843 tons received from main land cane processors. 4 Receipts of raw sugar by refiners less melt. 5 Includes deliveries for United States Military forces at home and abroad. SSR-2, MAY 1976 :r1

38 Domestic Production Sugar production in January-February was up 47 percent compared with the same period in However, February production was 44 percent below January 1976 output. Imports Imports of raw and refined sugar continued higher for the first 2 months of 1976 versus Raw receipts more than doubled and direct consumption imports were nearly four times as ~reat as in the previous year. Raw Sugar Prices (Source: New York Coffee and Sugar Exchange) Domestic-The domestic spot price of raw sugar averaged cents per pound in March, an increase of 8.1 percent from February. Volume of trading in March was 805 lots. Prices were lower during the first half of April, averaging 4 percent below the March average. World-The world spot price averaged cents per pound in March, up 10 percent from the February average. Trading volume was 97,133 lots in March up 58 percent from FebruarY. Refined Sugar Prices Wholesale-Prices advanced 'in Eastern areas with cane prices about 6 percent higher and eastern beet prices about 2 percent above the February average. In other areas prices were steady. Philippinefil Contracts (Source: Foreign Agricultural Service) The Philippines has announced sugar sales to two U.S. companies. The first calls for 650,000 metric tons of sugar to be supplied annually for tpe. next five years. This is the first direct agreement between the Philippines and a foreign refining company that did not pass through a middleman. The amount involved in the second sale is 500,000 tons annually for five years. Both sales were negotiated with the Philippine National Bank. Table 2-Distribution of sugar by primary distributors, January-February 1976 and 1975 Item Change 1975 to 1976 (Short tons, raw value) Continental United States Refiners' raw Refiners' refined..... Sub-total Beet processors' refined.... Importers' direct consumption. Mainland sugarcane processors' 1, , , ,290 23,078 2,436 1, , , ,121 6,404 7, , , , ,674-5,037 Total ,546,315 1,066, ,227 For: Alcohol Export Livestock feed......, Continental consumption'.. 12,025 1,534,290 1,087 5,069 1,059,932 1,087 +6, ,358 Puerto Rico Hawaii , ,000 14,001 4,852 +1,514 +1,148 1 Includes deliveries for United States Military forces at home and abroad. 2 Estimated. Table 3-Stocks of sugar held by primary distributors in the continental United States, February 29, '1976 and February 28, 1975 Item Change 1975 to 1976 (Short tons, raw value) Refiners' raw Refiners' refined.. Sub-total Beet processors' refined..... Importers' direct consumption... Mainland sugarcane processors. 421, , ,156 1,906, , , , ,945 1,577, , ,597 2, , , ,854 Total.... 3,200,661 2,970, ,161 *Incomplete coverage. 38 SSR-2, MAY 1976

39 Table 4-Diltribution of sugar by primary distributors in the continental United States, March and January-March 1976 and 1975 Item March I Jan.-March (Short toiui, raw value) March 1975 I Jan.-March Refiners eeet Processors' refined Importers' direct consumption Mainland sugarcane processors' 594, ,406 6, ,000 1,569, , , ,369 29,441 7,391 4,436 4,479 1,215, ,490 13,795 11,952 Total 967,157 2,513, ,561 1,758,649 For: Alcohol Export Livestock feed continental consumptlon 3 N.A. N.A. N.A. 967, ,025 8,079 2,501, ,956 1,613 13,148 1,743,888 1 Preliminary. 2 Estimated. 3 Includes deliveries for u.s. military forces at home and abroad. Table 5-8tocks of sugar held by primary distributors in the continental United States, April 3, 1976 and March 31, 1975 Item 1975 Change 1975 to 1976 (Short toiui, raw value) Refiners' raw Refiners' refined Sub-total Beet processors' refined Importers' direct consumption Mainland sugarcane processors' 312, , ,492 1,704, , , , ,712 1,420, , ,536-19, , , ,240 Total 2,959,276 2,835, ,776 1 Preliminary. 2 Estimated. Table &-Mainland Sugar: Production and marketings January-February 1976 and 1975 Item Change 1975 to 1976 (Short tons, raw value) Production Cane Florida Louisiana Texas Sub-total Domestic Beet 443,417-1,002 44, , , , , , , ,322-1, , , ,093 Total 1,342, , ,584 Marketings Mainland cane Florida Louisiana Texas, Sub-total Beet Processors 189,059 70,103 58, , ,290 98,833 11,665 18, , , , , , , ,169 Total 862, , ,725 1 Includes 2,963 tons marketed for export. SSR 2, MAY

40 Source of supply Table 7-Sugar receipts pf refiners and importers by source of supply January-February 1976 and 1975 Raw Sugar I Direct Consumption Sugar I Short tons, raw value Total 1976 I 1975 OFFSHORE Foreign Argentina... 11,941 5, Australia ,588 9 Belize , Bolivia... 14, Brazil , Canada , China, Republic of... 28, Colombia... 13, ,162 Dominican Republic ,908 79, Ecuador... 26,325 1,387-8 El Salvador ,572 16, Fiji Islands Guatemala... 38, Haiti , India ,205-13, Malawi , Mexico ,092 Netherlands Netherlands Antilles Nlcaragus... 51,114 16, Panama ,838 12, Peru... 85,423 9, Philippines... 28,446 52,255-2 South Africa , West Indies ,057 13, Total Foreign , ,007 22,750. 5,790 Domestic Hawaii ,200 43, , Puerto Rico... 44, Total Domestic ,239 43,395 1, Total Offshore , ,402 24,538 6, Mal nland cane area 311, , Acquired for reproc essing and samples , Grand Total ,008, ,166 24,538 6,155 11,941 5,932 59, ,539 14, ,099 8, ,653-13,656 1,837 42,908 79,713 26,325 1,395 29,572 16, , ,030 30, , , ,128 16,869 18,838 12,378 85,423 9,460 28,446 52,257 44,916-16,057 13, , , ,660 43,622 44, ,027 43, , , ,85g 117, ,045 1,032, ,321 1 Refined sugar received by refiners. 2 Refined sugar produced direct from cane by processor-refiner. 40 SSR 2, MAY 1976

41 Table 8- Primary distribution of sugar, continental United States, by States, February 1976 State and Region Cane sugar refiners Beet sugar processors Mainland cane sugar Mills Total Imports of Directconsumption sugar' Hundredweights 2 New England Connecticut Maine Massachusetts New Hampshire Rhode Island Vermont 75,645 31, ,450 68,731 19,737 6,931 2,400 6,000 5,000 78,045 31, ,450 68,731 24,737 6, ,091 17,212 Sub-total 542,138 13, , ,703 Mid-Atlantic New Jersey. New York Pennsylvania 591, , ,994 17, ,179 60,163 1, ,480 1,014, ,017 31,533 Sub-total. 2,266, ,266 2,240 2,508,004 31,533 North Central Illinois I ndlana. Iowa. Kansas Michigan. Minnesota.. Missouri Nebraska North Dakota Ohio. South Dakota Wisconsin 482, ,776 48,380 45, ,051 20, ,492 18,250 1, ,587 1,796 72,138 1,171, ,147 79, , , , ,021 85,168 39, ,538 12, ,246 19,000 1,672, , , , , , , ,418 41, ,125 14, ,384 1,628 Sub-total 1,833,023 2,567,114 19,000 4,419,137 1,628 Southern Alabama Arkansas Delaware. District of Columbia Florida. Georgia. Kentucky Louisiana Maryland Mississippi North Carolina Oklahoma South Carolina Tennessee Texas VIrginia West Virginia Sub-total Western Alaska Arizona California Colorado Idaho. Montana Nevada New Mexico Oregon Utah Washington. Wyoming Sub-total Unspecified GRAND TOTAL 182,480 61, ,961 19, , , , , ,636 95, ,124 75, , , , ,709 51,991 3,820,339 2,031 26, ,463 12,435 3,113 3,850 2,480 7,320 41,889 11,881 44,751 1, ,902 9,048,900 I... This column reflects on11 dellveries'of Puerto Rican refined sugar reported by states. Source: U.S. Bureau of Census Available only by customs district or port of entry. Sugar ol foreign origin polarizing over 99 degrees by Polariscope. Not 1 13,668 1, ,203 4, ,794 33,581 4, ,430-3,104 3, , , ,248 95,763 1,218 21,182 3,504 24,265 50,737 35, ,473 10,411 1,278, ,635 5,001,023 1,180 1,180 22, ,481 75, ,961 20, , , , , ,860 95, , , , , , ,605 55,849 4,038,141 2,048 68,416 1,320, ,198 4,331 25,032 5,984 31,585 92,626 47, ,224 11,436 1,865, ,635 14,072,343 5,258 5, ,122 Included lri total distribution by states. 3 Reported as produced or Imported and delivered except liquid sugar which Is on a sugar solids content basis. SSR-2, MAY

42 Tabla 9-.Primary distribution of sugar, Contantial United States, by States, January-February 1976 State and Region Cane sugar Beet sugar Mainland cane Imports of Directrefiners processors sugar Mills Total Consumption sugar 1 Hundredwelghts 2 New England Connecticut.. 145,503 7, ,128 Maine... 60,092 60, Massachusetts :795 24, , ,091 New Hampshire 126, ,621 Rhode Island.. 41,933 10,000 51,933 Vermont... 12,069 12,069 32,991 Sub-total... 1,039,013 42,002 1,081, ,903 Mid-Atlantic New Jersey... 1,163,357 44,061 1,207,418 New York... 1,634, ,368 3,180 1,976,343 56,617 Pennsylvania... 1,653, , ,772,176 Sub-total... 4,451, ,073 4,040 4,955,937 56,617 North Centra I Illinois.. 944,298 2,377,755 36,000 3,358,053 Indiana , , ,185 Iowa... 95, , ,369 Kansas , , ,401 Michigan , , ,278 4,106 Minnesota , , ,483 Missouri. 382, , ,305 26,586 Nebraska. 38, , ,883 North Dakota... 2,078 58,906 60,984 Ohio... 1,031, ,791 1,487,964 South Dakota... 2,737 29,835 32,572 Wisconsin , , ,457 Sub-total... 3,692,825 5,198,109 36,000 8,926,934 30,692 Southern Alabama , ,118 Arkansas ,346 28, ,014 Delaware. 274, ,179 Dlst. of Columbia... 39,929 2,420 42,349 Florida , ,207 3,297 Georgia... 1,024, ,024,497 Kentucky ,705 5, ,913 Louisiana ,789 3, ,371 Maryland. 624,807 7, ,817 Mississippi , ,863 North Carolina ,366 7, ,554 Oklahoma ,142 72, ,969 South Carolina , ,190 Tennessee ,818 12, ,409 Texas.. 1,216, , ,501,706 VIrginia ,816 3, ,566 West VIrginia.. 106,828 5, ,405 Sub-total... 7,772, ,241 4,262 8,208,127 3,297 Western Alaska... 3, ,022 Arizona. 49,862 84, ,289 California ,148 1,888,747 2,704,895 5,258 Colorado... 28, , ,757 Idaho.... 5,868 11,799 17,667 Montana... 8,111 41,824 49,935 Nevada.... 6,357 9,003 15,360 New Mexico ,736 44,166 57,902 Oregon... 78, , ,505 Utah ,470 65,594 89,064 Washington... 88, , ,531 Wyoming.. 3,159 21,766 24,925 Sub-total... 1,126,424 2,672,428 3,798,852 5,258 Unspecified... 1,293,107 1,293,107 GRAND TOTAL... 18,082,710 10,136,960 44,302 28,263, ,767 1 Source: Bureau of Census. Available only by customs district or port of entry. Sugar of foreign origin polarizing over 99 degrees by polariscope. Not Included In total distribution by states. 2 Reported as produced or Imported and delivered except liquid sugar which Is on a solids content basis. 42 SSR-2, MAY 1976

43 Table 10-Primary distribution of sugar, Continental United States, by States, January-February 1976 and 1915 State and Region Cane Sugar refiners 1976 I 1975 Beet processors 1976 I 1975 Thousa"4- of hundredwelghts 2 Total all Prlm,ry Distributors 1976 I 1975 New England connecticut Maine Massachusetts New Hampshire Rhode Island vermont * Sub-total 1, , Mid-Atlantic New Jersey New York Pennsylvania 1,163 1,635 1, ,549 1, ,208 1,976 1, ,660 1,315 Sub-total Nor! h Central Illinois Indiana Iowa Kansas Michigan Minnesota Missouri Nebraska North Dakota Ohio. South Dakota Wisconsin Sub-total Southern Alabama Arkansas Delaware District of Columbia Florida Georgia Kentucky Louisiana Maryland Mississippi North Carolina Oklahoma South Carolina Tennessee Texas VIrginia West VIrginia Sub-total Western Alaska Arizona California Colorado Idaho Montana Nevada New Mexico Oregon Utah Washington Wyoming Sub-total Unspecified Grand total 4, , , , , , ,126 3,655 1, , , ,083 13, , ,198 * * 5 7 * * 84 1, ,673 1,293 10, , , * * , , ,778 4,956 3, , , , , , , ,799 1,293 28,264 3,853 2, , , , , , , , ,765 1 Includes deliveries by mainland cane sugar mills. 2 Reported as produced or Imported and delivered except liquid sugar which Is on a sugar solids content basis. *Less than 500 hundredweight. SSR 2, MAY

44 Table 11-.world and U.S. raw sugar prices: Annual, , and monthly Dlfference 3 between World sugar TransportatIon, World price U.S. sugar u.s. and world price stowed Insurance and New York price (New prices New York Carlbbean 1 duty to New York 2 basis York spot) basis Cents per pound Cents per pound Cents per pound Cents per pound Cents per pound : January February March April May June July August September October November December : January February March April... May... June... July... August... September... October... November. December... 1 Sugar stowed at greater Caribbean ports Including Brazil. 2 1ncludes duty of.625 cent per pound. 3 Positive values Indicate U.S. price Is higher than World price. 44 SSR-2, MAY 1976

45 Table 12- U.S. cane and beet sugar prices: Various marketing territories, annual and monthly Year and Month Retail u.s. Cents per pound Nort~1east I Refined cane sugar 1 (Wholesale) Refined beet sugar 1 (Wholesale) Chicago- Southeast l I Pacific I Chicago- I Pacific North- Gulf West Coast Eastern West Coast West I I Cents Cents Cents Cents Cents Cents Cents Cents Cents per pound per pound per pound per pound per pound per pound per pound per pound per pound 1g : January February March April May June July August September October November December : January February March April... May June.. July August. September October November December , These are basis prices In 100-pound paper bags, not delivered prices. To obtain delivered prices, add "Freight Prepays" and deduct discounts and allowances. SSR-2, MAY

46 Table 13-Wholesale price quotations for sugar, corn sirup and dextrose (Source of dextrose and corn sirup prices-journal of Commerce) Refined Corn sirup Corn sirup relative Dextrose Dextrose relative Period Sugar New York 3 to ref I ned sugar New York 4 to refined sugar Wholesale wholesale Northeast' Quoted I Dry Basls 2 Quoted l Dry Basis Quoted l Dry Basls 2 Quoted I Dry Basis Cents per pound Percent Cents per pound Percent Average average average April May June July August September October November December January February March Last 12-month average Gross basis price In 100-pound bags subject to a 2 percent cash discount. 2 Assumes price Is for 80.3 percent solids for corn sirup and 92 percent solids for dextrose. Thus dry basis price Is quoted price divided by for corn sirup and divided by 0.92 for dextrose. 3 For regular conversion sirup (38-49 D. E.) In tank cars, N.Y. quoted 43 degree baume unmixed. 4 Hydrate: commercial 600-bag carload F.O.B. New York City. 5 Dextrose average for first 7 months of 1974 only. 6 Dextrose average for last 9 months of 1975 only. Table 14-Refined sugar production and month-end stocks Production Month-end stocks Period Cane Sugar Refiners Beet Sugar Processors Old Crop J 1 New Crop.I Total Cane Sugar Refiners Beet Sugar Processors 1, 000 short tons, raw value average , monthly average monthly average , April May June July August September October November December ,316 1,219 1, , January Febru11ry2 March ,915 1,906 1,705 Last 12-month average ,139 1 Beet sugar made from sugarbeets of the prior crop year In the month and year shown. 2 Revised. 3 Preliminary. 46 SSR-2, MAY 1976

47 ::============= SWEETENER PUBLICATIONS============== Compiled by: Larry C. Larkin Commodity Economic Division Economic Research Service RECENT SWEETENER PUBLICAnONS* *The following is a list of publications which may be of interest to the sweetener industry. The annotated review indicates the general content. Listing of these articles does not necessarily constitute an endorsement by the USDA. Copies of these articles are not available from this office but should be obtained from your library or the publisher. Readers who have articles concerning sweetener economics and wish to have them noted in this publication should submit an abstract, and two copies of the article to the Economic Research Service, Sweetener Group, FVST Program Area, Room 200, th Street, Washington, D.C Amato, Vincent V., NATURAL SWEET ENERS AS FUNCTIONAL INGREDI ENTS, Snack Food, 64(10): 35,54, Oct Molasses and honey blends are reported to fit well into the pattern of functional ingredients. Molasses is (1) a natural colorant; (2) a natural source of salts; (3) a natural source of sugar; (4) contributes natural flavoring and (5) offers natural nutrition. This product contains no additives, preservatives, or artificial ingredients and can be substituted for liquid honey with no 5. change required in formulation. Blake, Richard W., THE SUGAR BEET GROWER: FUNCTIONING IN AN CON TROLLED ENVmONMENT, Sugar y Azucar, 71(2): 30-31, Feb Discussed are the positions of consumer and sugar producers in an environment where present prices or future price declines elminate any incentive to expand production, and could well have the opposite long term effect. The author indicates the domestic producing industry needs a simple program, ideally one which will provide a stability of supply and a recognition of the capital inputs in production and processing. Candy and Snack Industry, FINLAND'S 6. HELLAS PIONEERING ANTI-CARIES SWEETENER, 141(1): 22-24,26, Jan Zylitol, in chewing gum and pastilles, prevents development of dental caries; and may even reverse the decay process in early stages, the report indicates. Chemical Week, CORN SWEETENER MARKET IS Mmmm-SO GOOD! pp , Oct. 29, This article focuses on the replacement of sugar by high-fructose syrup in many applications and the rapidly expanding capacity of high-fructose syrup production. Christodoulou, P. MEANS OF SAVING FUEL IN SUGAR FACTORIES, Hellenic Sugar Industry Quarterly Bulletin, (20): , Various means of fuel economizing in beet sugar factories are examined, including: (1) maintaining a nominal diffusion rate to ensure low sugar losses and low juice draft and hence low steam consumption in evaporation; (2) using thermocompression to raise the juice Brix and save steam; (3) operation of vacuum pans on third or fourth evaporator effect vapors; and (4) the avoidance of electric power waste. By the use of these measures it is calculated that a 30-percent savings in fuel could'be obtained. Clydesdale, F. M., SUGAR-FACTS AND MYTHS, THE CONFECTIONER, 60(3-4): 9-10, 13, 23-24, July/Aug The place of sugar in the diet is analyzed by a nutritionist: SSR-2. MAY

48 Council on Wage and Price Stability, MARKETING SPREADS FOR FOOD PRODUCTS, Staff Report, 49 pp., Washington, D.C., May This report identifies major sources of changes in farm-retail spread and discusses common misconceptions of the existing series. The report also suggests improvements in the information system for the food production and marketing sector. Deutsch, Ronald M., SUGAR IN THE DIET OF MAN, The Manufacturing Confectioner, 55(9): 69-73, Sept A digest of a recent reprint from World Review of Nutrition and Dietetics. Contents include: sugar and safety; sugar and heart disease; sugar and obesity; sugar and low blood sugar, and sugar and dental decay. Durbin, Gilbert, J., THE LOUISIANA SUGAR INDUSTRY, The Sugar Bulletin, (54)(9): 14-15, Feb. 1, Reviews the present position of the Louisiana sugar industry in regard to absence of sugar legislation, sugar production, sugar consumption, and profitability of the industry. Finney, Karl, F., A SUGAR-FREE FOR MULA FOR REGULAR AND HIGH-PRO TEIN BREADS, The Bakers Digest, 49(6): 18-22, Dec A chronological presentation of the research concerned with the production of high-protein bread using a sugar-free formula, a straight-dough, and a 70-minute fermentation time. Food Processing, SOME OTHER SWEET ENERS, 36(11): 26-28, Nov Discusses the characteristics of fructose, saccharin, cyclamate, aspartame and dihydrocchalcone. Some of these sweeteners are likely to be used in products because of low caloric contribution, desirable metabolic characteristics, or "enhancer" qualities. Fruin, James C., and Scallet, Barrett, L, ISOMERIZED CORN SYRUPS IN FOOD PRODUCTS, Sugar y Azucar, 71(12): 37, Feb The manufacture of isomerized corn syrup has become a sizable part of the total production of syrups by the corn wetmilling industry in the United States Attributes of high-levulose corn syrup which are of particular interest to food technologists and food processors are summarized under humectancy, crystallization, osmotic pressure, fermentable sugars, color and flavor, color changes, and sweetness. Havighorst, Carl R., SUGAR FROM BEETS AT 5,000 TONS! DAY, Food Engineering, 48(2): 89-93, Feb A discussion of beet sugar companies' efforts to approach process development from a total systems point of view in order to increase output and yields. Humbert, R. P., ALCOHOL FOR GAS OLINE FROM SUGARCANE, Sugar y Azucar, 71(2): 32, Feb The transformations from sugarcane juice to alcohol are efficient in terms of energy conversion and the costs of production are now considered competitive to energy from fossil fuels. Jackel, SimonS., PROCESSING BAKERY FOODS IN THE FACE OF CARBO HYDRATE SHORTAGES, The Baker's Digest, 49(5): 36, 38, 40, Oct Discussed is the possibility that a major share of the sweetener market in bread, rolls, and other yeast-leavened products will be replaced by sweeteners derived from corn: dextrose, high-conversion com syrups or the new high-fructose corn syrups. Japan Sugar Refiners' Association, REVIEW OF THE SUGAR INDUSTRY IN JAPAN, La Sucrerie Beige, 94(2): 57-62, Feb A brief history of Japanese sugar industry is presented, accompanied by statistics on the domestic sugar production and consumption. In addition, information on Japan's sugar trade, sugar prices, and sugar policy is presented. Kickle, Hunter, APPLICATIONS OF HIGH-FRUCTOSE CORN SYRUP, Sugar y Azucar, 71(1): 22-23, Jan The use of high-fructose corn syrup in dressings, frozen dairy products, jams and preserves, syrups and toppings, and canned fruits is discussed. Loupe, Denver T., THE USE OF HERBI CIDES IN LOUISIANA SUGARCANE, Sugary Azucar, 71(1): 26-27, Jan SSR-2, MAY 1976

49 An efficient use of herbicides is essential to prevent losses in sugarcane production due to weed competition. However, the use of herbicides does not constitute a complete weed control program; an effective program also involves timely cultural practices. The article discusses the various herbicides used in sugarcane production. The Manufacturing Confectioner, XY LITOL NEW NATURAL SWEETENER, 55(11): 29, Nov Discussed are results obtained from recent clinical feeding trials conducted in Finland with a new sweetener called Xylitol. Morgan, Merlin, THE SOUTH AFRICAN SUGAR INDUSTRY, F. 0. Licht's International Sugar Report, 108(1): 1-13, Jan. 2, Included in this article is an early history of the South African's sugar industry, cultural practices, storage, and shipping facilities and data on sugar production by mill and grade. Nagle, Robert 0., SUGAR'S TURN IN THE BARREL, Snack Food, 64(2); 42-43, Feb Discussions of reasons for recent high sugar prices. Saussele, H. J., Ziegler, H. F., and Weideman, J. H., HIGH-FRUCTOSE CORN SYRUPS-FOR BAKERY APPLICA TIONS, The Baker's Digest, 50(1): 32-34, Feb Results of investigations suggest that, with a few exceptions, this new product may be widely used by the baking industry. Since these syrups are less costly than sucrose on a pound for pound solids basis and may be even less costly through the use of high-fructose corn syrup blends, it may be to the baker's advantage to investigate the use of this unique new sweetener. Sendak, Paul E., MARKETING AND MARKETING RESEARCH IN THE MAPLE PRODUCTS INDUSTRY, National Maple Syrup Digest, 15(1): 16-17, Feb Summary of remarks made at the North American Maple Syrup Council Meeting and the Ninth Conference on Maple Products, at Keene, New Hampshire, Oct , Swope, Daniel A., PROSPECTS FOR REVITALIZING THE MARKET FOR SORGHUM SIRUP, ARS, USDA, Washington, D.C., ARS-NE-66, Oct Recommendations for revitalizing the market for sorghum sirup are outlined. U.S. Congress, REVIEW OF SUGAR MARKETING SITUATION, Hearings before the Committee on Agriculture, House of Representatives, 94th Congress, 1st Session, July 14-18, 22, 1975, 399 pp. U.S. Congress, 1976 U.S. AGRICUL TURAL OUTLOOK, 94th Congress, 1st Session, pp , Washington, D.C., Dec. 18, Papers relating to various t'lweeteners presented at the National Agricultural Outlook, Washington, D.C., Nov , USDA, CROP PRODUCTION-1975 ANNUAL SUMMARY, Statistical Reporting Service, Crop Reporting Board, CrPr 2-1(76), Washington, D.C., Jan. 15, Acreage, yield and production data for various agricultural crops, including sugarcane and sugarbeets. USDA, PROSPECTIVE PLANTINGS, Statistical Reporting Service, Crop Reporting Board, CrPr 2-4(4-76), Washington, D.C., Apr. 15, Expected 1976 planted acreage and change from 1975 for various agricultural products, including sugarbeets. Viton, A., SUGAR IN 1975 AND BEYOND, Sugary Azucar, 71(1): 14-15, 18, Jan Using available data relating to consumption, prices, cost-of-living, and income over the past 12 to 18 months, the author suggests that given the structure of national sugar policies, the developments in the areas of prices and consumption could have been predicted with a high degree of accuracy. Voll, Henry, NEW ADAPTATION OF HONEY TO BREAD BAKING, The Baker's Digest, 48(4): 45, 48-49, 58, Aug A blend of honey and invert sugal'- offers many advantages to the baker. It provides the beneficial effects gained from the use of honey in baked products and eliminates handling problems and lack of uniformity. SSR-2, MAY