Formerly NE North Dakota, now NW MN | .05 not a reflection of sugar quality. It's USDA's job to take it off the market and "make it disappear" through none-market channels.
The thinking is, if you don't actually do something to lower the carryout, the price will continue to bounce off of and into the loan rate. If you don't eliminate the surplus, gov't will probably own the whole thing.
I honestly don't think quality issues were a problem. As you probably recall, it was pretty cold in april (like, there was 6 inches of snow on ground here on april 12th). It was a worst-case scenario spring for planting, but a best-case scenario for storing sugar beets. (Polar opposite of 2012). |
Sugar Round 2
