This report evaluates the U.S. and world sugar markets for 2012-2022 using the Global Sugar Policy Simulation Model. This analysis is based on assumptions about general economic conditions, agricultural policies, population growth, weather conditions, and technological changes. Both the U.S. and world sugar economies are predicted to improve over the next ten years. Sugar prices increased from 18.7 cents/ lb in 2009 to 27 cents/lb in 2010 and 32 cent/lb in 2011 before falling to 18.3 cents/lb in early 2013. World sugar production remained the same in 2012 while consumption increased. World demand for sugar is expected to be strong during the next few years, resulting in world sugar prices recovering from the lows in 2013 and 2014. Sugar prices are expected to increase near the 25-26 cents/lb by 2022. The U.S. wholesale price of sugar is projected to increase from the low 33 cents/lb in 2013 to near 40 cents/lb by 2022. It is projected that Mexican exports to the United States will continue to be near the 1.2 million metric tons per year. World trade volumes of sugar are expected to increase throughout the forecast period.


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