Milling & Baking News - September 6, 2005 - 17

A Century of Milling. A Tradition of Innovation.
For more than 100 years,
The Morrison Milling Company has
produced the best flour available.
We continue to develop a
growing number of
innovative grain-

based products to meet the needs
of our retail and food-service
customers. One thing never
changes, however: our
100-year commitment
to quality.

www.morrisonmilling.com

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P.O. Box 719 * Denton, Texas 76202 * (TX) 800-580-5487(U.S.) 800-866-5487

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18 / Milling & Baking News, September 6, 2005

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nearly in the direct path of Hurricane Katrina and
suffered more significant damage.
"It's as bad as the city of New Orleans," a company source said. The company did not know the
fate of many of its 300 employees but had set up a
hot line for them to call. There was no estimate as
to when the plant might reopen.
The additional 225,000-ton allotment (of which
54% is required by law to be beet sugar, 46% cane
sugar) brings the 2004-05 O.A.Q. to 8.575 million
tons, raw value, after the addition of 250,000 tons
announced Aug. 19.
"The sugar market has progressively tightened
across FY 2005 (2004-05) due to unexpected
strong demand, reduced cane sugar production
caused by previous hurricanes and expected
weather-reduced September 2005 beet sugar production in the Upper Midwest," the U.S.D.A. said.
The U.S.D.A. said the latest addition was expected to result in immediate availability of some
beet sugar "blocked stocks."
"It is also recognized that not all entities receiving
allocations will be able to supply sugar this month
because of the location of current inventories and
the transportation logistics of moving refined sugar,"
the U.S.D.A. said. The Department surveyed processors to determine the amount of refined sugar that
could actually be delivered by Sept. 30, the end of
the 2004-05 marketing year.
The U.S.D.A. estimated that 71,000 tons of the
122,288 tons allocated to beet sugar could actually enter the market.
There were no cane sugar blocked stocks to
release, and the U.S.D.A.'s Commodity Credit Corp.
also did not hold any forfeited sugar stocks.
"Since C.C.C. also has no sugar, the allotment is
reassigned to imports, notably to the refined sugar
T.R.Q. allocation and to over-quota (tier II) sugar
entering from Mexico," the U.S.D.A. said.
The Aug. 12 supply-demand report estimated
2000-05 Mexican tier II imports at 110,000 tons, raw
value, but "assigning this shortfall to raw sugar exporters would not help alleviate the acute shortage in
refined sugar," the U.S.D.A. said. "Refineries already are
operating at near capacity and few supplying countries
are able to land raw sugar before Sept. 30.
"Allowing early entry for the refined sugar 200506 minimum T.R.Q. is expected to result in an additional 22,000 tons, raw value, available at once to
the market. Most is already in the United States in
bonded warehouse facilities or nearby in Canada."
The release of beet sugar blocked stocks and the
early entry of refined sugar imports could result in
more than 93,000 tons more sugar in the market in
September, the U.S.D.A. estimated.
"This amount is adjudged to be well in excess of the
reduced supply resulting from the production disruption caused by Hurricane Katrina," the U.S.D.A. said.
The early entry of the 2005-06 refined sugar T.R.Q.
does not include specialty sugar, the U.S.D.A. noted.
The condition of the sugar cane crop still was
being assessed last week. Louisiana is the nation's
second-largest cane grower, behind Florida, with
460,000 acres for harvest and 2005 production
forecast at 11,960,000 tons as of Aug. 1, according to the U.S.D.A. MBN

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Milling & Baking News - September 6, 2005

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