Washington, Jan 30 - Low domestic prices should encourage exports of Mexican sugar to U.S. buyers, the Agriculture Department said in a sugar "outlook" report on Thursday.
The report by USDA's Economic Research Service forecast exports of 575,000 tonnes raw value for fiscal 2008/09, which ends on Sept 30. It matched a USDA estimate made on Jan 12.
"Almost all exported sugar is expected to be shipped to the United States," said the report.
ERS said wholesale sugar prices in Mexico City in mid-January were historically low when adjusted for inflation. The peso has declined in value against the U.S. dollar since August, the report said.
"These low domestic prices should make for strong exports to the United States, where prices, especially for refined sugar, are higher," said ERS.
The U.S. price for raw cane sugar was 20.15 cents per lb and for refined beet sugar were 35.0 cents per lb in mid-January, said the report.