U.S. sugarcane production was higher than expected
U.S. sugarcane production is set to reach significant levels. There were some concerns about the crop due to tropical storms and other weather systems.
Even though some acreage was flattened, the crop actually restored itself upright.
USDA Deputy Chief Economist Cindy Nickerson says that this contributed to a higher month-over-month production forecast from USDA.
“The estimate coming in this month is at 34.9 million tons and if this is real, it would be the highest production since 2002,” she states. “We’re looking at a season where acres are at their highest since about 2004, but coupled with high yields, at an estimated 37.4 tons per acre.”
Nickerson adds that Florida and Louisiana are both reporting their largest sugarcane planting in almost two decades.