sugar futures brokers

sugar futures brokers

June 2nd, 2016

Rainy weather in Brazil that is delaying sugar loading at ports encouraged another leg up for sugar prices Thursday.

Raw sugar futures for July delivery rose 3.9% to end at 18.08 cents a pound on the ICE Futures U.S. exchange, its highest close since June 27, 2014.

Raw sugar futures have risen 18.6% since the start of the year, with hedge funds and other money managers piling on bullish bets on the idea that sugar demand will outstrip supply this year and help the world unwind the glut of the sweetener.

But some firms have warned that they think those bets are overdone. Net bullish speculators in sugar reached a record high recently and are only slightly down from that high water mark as of last Tuesday, according to CFTC data.

“Do the Funds know something we don’t?” sugar trader Marex Spectron said in a report. “Perhaps we are being too complicated and the truth is simple: there’s a deficit coming, so everything is bullish.”

The firm said part of the bullish argument is the idea that very few sugar stocks are “proven” and actually accessible for trade, which has some firms expecting a very tight market this year and next.

In other markets, cocoa for July rose 0.4% to end at $3,057 a ton, arabica coffee for July was up 0.9% to settle at $ 1.23 a pound, frozen concentrated orange juice futures for July rose 1.8% to end at $1.5705 a pound and July cotton dropped 0.5% to close at 62.87 cents a pound.

- Julie Wernau at Wall St. Journal.