Range Energy buys $900,000 of sugar from the USDA

In Colorado, Range Energy bought 7,118 short tons of refined beet sugar for $900,000 from the USDA as the only ethanol producer to buy sugar under the Feedstock Flexibility Program. The sugar was purchased from Denver-based Western Sugar.

The USDA said sugar mill interest was encouraging but that transportation, volume of sugar feedstock and other concerns appear to have limited bioenergy company participation. USDA expects greater participation in FFP as these concerns are addressed.

At this time, the Credit Commodity Corp. determined that it does not expect to purchase sugar using the FFP authority in FY 2014 because sugar market forecasts indicate that the domestic sugar surplus will be less in FY 2014 than in FY 2013. CCC actions in FY 2013 will reduce FY 2014 sugar stocks and help eliminate the potential for forfeitures in FY 2014.