U.S.D.A. reallocates unused cane sugar allotments

by Ron Sterk
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WASHINGTON — The Commodity Credit Corp. (C.C.C.) of the U.S. Department of Agriculture reassigned projected unused 2006-07 cane sugar allocations among sugar cane processors and cane states. No changes were made to beet sugar allocations.

Based on estimates in the May 11 World Agricultural Supply and Demand Estimates report and other data, the C.C.C. increased the allotment for Louisiana by 37,943 tons, raw value, to 1,423,167 tons. The C.C.C. reduced allotments for Florida by 29,494 tons, to 1,732,769 tons, Texas by 1,459 tons, to 198,965 tons, and Hawaii by 6,991 tons, to 264,474 tons.

The latest cane production forecasts indicate allocation imbalances among processors in Louisiana, Florida and Hawaii, the C.C.C. said. By law allocations first are reassigned within each state for processors projected to have excess allocation to processors projected to have deficits.

"Because Florida and Hawaii processors still had surplus allocation after this redistribution step, C.C.C. reassigned this excess allocation, plus surplus allotment from Texas, to Louisiana," the C.C.C. said. "This enables Louisiana processors to market their projected fiscal year supplies."

The C.C.C. is required to determine the need for reassignments for the current marketing year by June 1. The C.C.C. made overall allotment quantity (O.A.Q.) and allocations on Sept. 28, 2006, for the 2006-07 marketing year. The O.A.Q. total of 8,750,000 tons, consisting of 4,755,625 tons of beet sugar, 3,619,375 tons of cane sugar and 375,000 tons reassigned to imports, was not changed.

For a full list of marketing allocations and changes by processor, click here.

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