| United States Department of Agriculture |
| Foreign Agricultural Service |
| Circular Series FS 01-02 |
| May 2002 |
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Sugar: World Markets and Trade |
Production estimates for 2001/02 have been revised upward and forecast production for 2002/03 is a record high. Even though consumption remains firm, import demand may slacken as principal importing countries of Russia, Ukraine, and China look to reduce imports in the face of increasing domestic production. Viewed broadly, over the long term, refined prices over the last 6 months generally were comparable if not better than those of the preceding 3 years. This strengthening may have been in response to the lower output of refined sugar by the European Union, and to a steady demand for refined imports in Eastern Europe, Africa, and the Middle East. However, during the last three months, refined prices have softened from those of last summer and early winter, joining the downward movement of raw prices, as expressed in the spot Caribbean No. 11 contract. Lower prices are a reaction to higher than expected production for the 2001/02 season and to expectations for further increases in 2002/03.
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