U.S.D.A. exchanges sugar for re-export credits
by Ron Sterk
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WASHINGTON — The U.S. Department of Agriculture said Sept. 19 it had exchanged 51,448 tonnes (56,712 tons) of sugar obtained through sugar loan forfeitures at the end of August for about 139,882 tonnes (154,193 tons) of refined sugar re-export credits for an exchange ratio of about 2.72.
Of the sugar exchanged, 37,840 tonnes was raw cane sugar in Louisiana and the remaining 13,608 tonnes was refined beet sugar in North Dakota. It was the U.S.D.A.’s third tender to exchange sugar for refined re-export credits this summer.
A total of 77,451 tonnes (85,375 tons) of sugar had been forfeited as collateral for government loans at the end of August. The U.S.D.A. also extended its offer to exchange the remaining 26,003 tonnes (28,663 tons) of forfeited sugar for refined sugar re-export credits on Sept. 19.
The U.S.D.A. on Sept. 18 announced its second Feedstock Flexibility Program tender with quantity offers due Sept. 20.
About 600,000 tons of sugar are pledged as collateral for government loans that mature Sept. 30, according to the U.S.D.A. The earlier exchange actions removed 345,712 tonnes of import supply for 106,742 tonnes of C.C.C. inventory, the U.S.D.A. said.