Mexico Announces Sugar Cane Reference Price Nov. 11, 2014
The National Committee for the Sustainable Development of Sugarcane (CONADESUCA) through the Secretariat Economy (SE) published in the Diario Oficial (Federal Register), the standard sugar reference price to determine the final cane payment for marketing year (MY) 2014/15. This reference price is also the price that should be used to calculate final sugarcane payments for the MY 2013/14 crop. The reference price is $7,099.83 pesos per MT ($517.10 dollars/MT at $13.73 pesos per dollar exchange rate).
Introduction: This report summarizes an announcement from the Secretariat of Economy published in Mexico’s Diario Oficial (Federal Register) on October 30, 2014, containing the sugarcane reference price for MY 2014/15.
Disclaimer: This summary is based on a cursory review of the subject announcement and therefore should not, under any circumstances, be viewed as a definitive reading of the regulation in question, or of its implications for U.S. agricultural export trade interests. In the event of a discrepancy or discrepancies between this summary and the complete regulation or announcement as published in Spanish, the latter shall prevail.
Title: Announcement of the Reference Price of Sugar- Standard Base- for payments of sugarcane for MY 2014/15 as proposed by the National Committee for the Sustainable Development for Sugarcane.
Executive Summary: The Secretariat of Economy published an announcement in the Diario Oficial (Federal Register), on October 30, 2014 that states the reference price of sugar -standard base- that should be used to calculate sugarcane payments for the MY 2014/15 crop. The reference price is $7,099.83 pesos per MT ($517.10 dollars/MT at $13.73 pesos per dollar exchange rate). This price is slightly higher than prices announced for the past MY 2013/14 of $6,697.06 pesos per MT ($511.22 dollars/MT).
According to what has been established by CONADESUCA, this reference price will also be the definitive reference price of sugar for the final adjustment of the payment for MY 2013/14 sugarcane.
The sugar reference price is based on a complex formula involving the average price of semi-refined (estandar) sugar in different regions of the country, as determined by CONADESUCA, amongst other data. This reference price is important because according to Article 58 of the Law of Sustainable Development of Sugarcane, approximately 57 percent of this set reference price is paid to growers for their sugarcane