The U.S. Agriculture Department on Wednesday cut its forecast for domestic sugar supplies in the 2015/16 marketing year on lower imports from Mexico and higher demand.
The USDA pegged the closely watched stocks-to-use ratio at 13.5 in its monthly supply/demand report, down from 15.3 last month and 14.4 in the previous marketing year.
U.S. consumers will use 12.3 million tons of sugar in the year that began Oct. 1, up from November's outlook of 12.1 million tons.
Mexico is forecast to ship about 1.3 million tons of the sweetener to the U.S. market, less than the previous forecast of 1.5 million tons. The USDA also lowered its estimate for imports from the country in 2014/15.
Those revisions offset a higher outlook for domestic cane and beet production, pegged at just under 9 million tons, up from 8.8 million in November.
