- The Wall Street Journal reports that the U.S. Department of Agriculture is considering the purchase of 400,000 tons of sugar, a move that could help stabilize sugar prices but negatively impact costs for candy makers.
- U.S. sugar prices fell 18% since October when the USDA began loan and support program that could see as much as a $80 million loss.
- Sugar companies such as American Crystal Sugar Co., Amalgamated Sugar Co. and U.S. Sugar Corp. stand to benefit, but Mars, Hershey and other confectioners could incur steeper costs that would likely be passed on to consumers.
From the article:
"... The move would benefit companies that turn sugar beets and sugar cane into granulated sweetener, a business plied by American Crystal Sugar Co., Amalgamated Sugar Co. and U.S. Sugar Corp. The USDA wouldn't say how many companies have received loans, or identify them. U.S. Sugar said it doesn't have any USDA loans outstanding. American Crystal and Amalgamated didn't respond to requests for comment. ..."