C.C.C. receives offers on 47,627 tonnes sugar
by Ron Sterk
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WASHINGTON — The U.S. Department of Agriculture’s Commodity Credit Corp. received offers on 47,627.2 tonnes of raw cane sugar in its July 26 tender seeking 43,046 tonnes in an invitation issued July 23 to buy domestic sugar to exchange for refined sugar re-export credits in an effort to reduce the domestic sugar surplus.
Of the total, 20,411.7 tonnes was offered by the Cajun Sugar Cooperative, Inc., of New Iberia, La., and 27,215.5 tonnes by Lula-Westfield, L.L.C., of Paincourtville, La. The amounts were published in a catalog late July 26. Price offers for the quantities listed in the catalog are due July 29 and successful offerors will be notified July 30.
The invitation and exchange is being administered similarly to the invitation announced June 18. Results of that tender were announced July 10 and resulted in the C.C.C. buying about 91,000 tonnes of domestic refined beet and raw cane sugar that were exchanged for re-export credits and resulted in the removal of about 300,000 tonnes of imported supply at a cost of $43 million.
The July 23 invitation is expected to remove an additional 136,000 tonnes of imported raw cane sugar at a cost of $18.7 million, the U.S.D.A. said.
The latest tender was for raw cane sugar only because raw cane posed the greatest risk for forfeitures at this time, the U.S.D.A. said. The latest tender also requires sugar offered must be pledged as collateral for C.C.C. loans. The earliest potential forfeiture date is Aug. 1.