The U.S. doubled the amount of refined sugar exports allowed by processors to 100,000 metric tons because of expanding supplies in the domestic market.
The increase took effect May 1 and will revert back to 50,000 tons on Jan. 1, 2015, the U.S. Department of Agriculture said in an April 30 notice on its website. U.S. sugar production will climb 5.8 percent to 8.98 million short tons (8.1 million metric tons) in the year ending Sept. 30, the USDA said April 10. Stockpiles are forecast at 2.1 million short tons, 55 percent higher than two years earlier.
The refined sugar re-export program allows processors to import raw sugar as long as they export an equal amount of refined sweetener or as an ingredient in sugar-containing products, the USDA said. The USDA said it will continue to monitor the U.S. sugar market and may take more steps if needed.
U.S. sugar futures traded on ICE Futures U.S. in New York have dropped 12 percent this year, after slumping 38 percent last year.