News International Sugar Journal

US government buys sugar to avert crisis [Registered]

The US Department of Agriculture recently bought sugar from domestic growers, the government’s first direct intervention in the nation’s sugar market in more than a decade. The USDA paid $43.8 million for the sugar but averted an expected $110 million in forfeitures of sugar price support loans. It then exchanged the sugar with domestic refiners for import credits. The USDA bought 91,238 metric tons and traded it for import credits worth 299,153 tons. But market participants do not think it will be enough to stave off a potential wave of defaults on $600 million in outstanding federal loans to US…

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