April 30, 2012

Managed Futures – Smaller managed futures funds able to exploit niche commodity markets and the most volatile conditions are increasingly likely to win assets from investors disappointed with returns from the big trend-followers that dominate the industry.

Managed futures, or commodity trading advisers (CTAs), attracted a wave of assets in 2009 after performing well during the 2008 financial crisis.

Mainstream institutional money flooded into some of the best-known trend-followers, so that 60 percent of total CTA assets are now with the top 10 players.

But since 2009, industry performance has been patchy as traditional trend-following models have struggled in range-bound markets in which it is hard to gain traction.

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April 30th, 2012

Sugar Futures – The price of raw sugar traded in New York may fall below 19 cents a pound “very soon,” prompting processors in top producer Brazil to make ethanol rather than the sweetener, Marex Spectron Group said.

Sugar futures have fallen 8.4 percent on ICE Futures U.S. in New York this year, as supplies outpace demand by 6 million metric tons, up from a previous forecast of 5.2 million tons, according to the International Sugar Organization in London. The price was at 21.34 cents a pound by 6:28 a.m. Below 19 cents a pound, millers in Brazil would favor production of the biofuel, Marex Spectron said, referring to the variety used in flex fuel cars.

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