sugar futures brokers

sugar futures brokers

August 24th, 2018

Sugar futures prices have fallen to their lowest levels in a decade and are likely to drop further as record world-wide production collides with healthier eating.

Raw sugar futures traded on the ICE Futures U.S. exchange SBV8, -1.90% settled at 10.1 cents a pound on Monday, the lowest finish for a front-month contract since June 10, 2008, according to Dow Jones Market Data. Year to date, prices have lost more than 32%—the biggest percentage decline so far among major commodities.

“The world has gone from supply deficit to supply surplus in the past year and a half,” says Sal Gilbertie, president and chief investment officer at Teucrium Trading. “This year, both India, the world’s second-largest producer of sugar, and Thailand, the world’s fourth-largest sugar producer, are having record production years, which has ballooned the surplus.”

World sugar production is forecast to reach a record level of 187.6 million metric tons in the 2017-18 marketing year, according to the United Nations’ Food and Agriculture Organization, or FAO. That would mark an increase of just over 11% from the previous year.

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Sugar futures hit 5-1/2 month high

On November 16, 2017, in sugar futures trading news report, by Infinity Trading
sugar futures brokers

sugar futures brokers

November 14th, 2017

Sugar futures raw on ICE edged up to equal the prior session’s 5-1/2 month high on Tuesday as funds scaled back short positions, although the rise was slowed by producer selling.
SUGAR

* March raw sugar was up 0.03 cents, or 0.2 percent, at 15.16 cents per lb by 1210 GMT after equalling Monday’s 5-1/2 month peak for the front month of 15.18 cents.

* Dealers said the recent run-up in prices has been driven partly by a rise in energy prices which is leading to a switch in Brazil to using more cane to produce ethanol at the expense of sugar.

* Dealers said the switch would curb sugar production in Brazil and reduce the size of a widely anticipated global surplus in the 2017/18 season.

* “We are not talking about the disappearance of the surplus but we are talking about a reduction (in its size),” one London dealer said.

* Dealers said the market was, however, struggling to overcome resistance around the March contract’s peak in September of 15.20 cents and a break above that level could trigger a fresh wave of fund short covering.

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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.

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sugar futures brokers

sugar futures brokers

February 24th, 2016

Sugar futures are still a “buy”, even after their 9% surge of the last session, Australia & New Zealand Bank said, citing factors including the world production deficit and the cut by funds of their net long position.

Raw sugar futures on Tuesday staged their biggest gain in New York since at least 1993, on a most-active contract basis, a surge attributed to a cocktail of factors, including technical factors, and an increase by the International Sugar Organization to its forecast for the world output deficit in 2015-16.

Other explanations proffered include talk of a squeeze on European white sugar exports, a call by Imperial Sugar for up to 500,000 tonnes of extra US import quota for raw sugar, and talk of port delays to Argentine deliveries.

“Observers are offering plenty of explanations for the rise,” said Tobin Gorey at Commonwealth Bank of Australia, adding that “traders will tell, or perhaps bore, their grandchildren with tales of this day”.

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sugar futures brokers

sugar futures brokers

June 25th, 2014

Dry weather is hurting sugar-cane crops in Brazil’s Center South, the main growing region, compounding damage from a drought in the first quarter, an industry researcher said.

Yields this season will drop to 71 metric tons of cane per hectare, compared with about 79 tons last year, Julio Maria Borges, the head of Sao Paulo-based Job Economia & Planejamento, said in a telephone interview.

In the past month, areas near Ribeirao Preto, Sao Paulo, in the heart of the cane belt, received as little as 25 percent of average rainfall, according to MDA Weather Services. Western Minas Gerais and southeast Goias state, have also been “very dry,” and the pattern is expected to extend in the next six to 10 days, said Donald Keeney, a meteorologist with the Gaithersburg, Maryland-based forecaster.

“There is no good news for the crop,” Borges said. “The cane condition is very poor, and the agricultural yield, or total cane, will probably be lower in the second half of the harvest” that started April 1, he said.

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sugar options

sugar futures brokers

Sugar production in Brazil’s Center South, the largest producing region, is poised to drop 3.2 percent this year after drought ravaged cane crops.

Output may decline to 33.2 million metric tons in the season that began April 1, from 34.3 million a year earlier, according to seven estimates from traders and analysts compiled by Bloomberg. The slump will mean global sugar production trails demand by as much as 3 million tons, according to Luis Roberto Pogetti, chairman of Sao Paulo-based Copersucar SA.

Futures climbed 11 percent to 18.25 cents a pound this year in New York. The worst drought in decades during the first quarter eroded crop quality and threatens yields in Brazil, the world’s top producer and exporter. Investors are betting the rally will continue, increasing their wagers on higher prices by more than fivefold since February, U.S. government data show.

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sugar options

Sugar Futures

April 23rd, 2014

Sugar output in Brazil’s Center South, the world’s largest producing region, will decline 5.2 percent this season after crops were hurt by drought.

Mills will produce 32.5 million metric tons of the sweetener in the current 2014-15 harvest, down from 34.3 million in the previous season, Brazilian sugar industry group Unica said in a statement distributed in Sao Paulo today.

Crops in the Center South, where most of Brazil’s sugar and ethanol are produced, faced the driest and hottest summer in 70 years, according to Somar Meteorologia.

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sugar options

sugar futures

September 6th, 2013

Sugar rose to the highest in almost three weeks in New York as rising demand may mean a smaller surplus and a stronger Brazilian real reduced the incentive for exports from the world’s top producer. Coffee gained.

Sugar production will outstrip demand by 2 million metric tons in the 2013-14 season that starts in October in most countries, according to Czarnikow Group Ltd., which has clients in 83 countries. That’s down from a previous forecast of 3.9 million tons. The Brazilian real gained yesterday for a fourth session and reached the highest since Aug. 14. A stronger local currency reduces the incentive for exports priced in dollars.

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March 8th, 2013

Sugar futures climbed to a four-month high in London on speculation millers in Brazil, the world’s leading producer, will make more ethanol at the expense of the sweetener just as port congestion threatens to delay exports. Cocoa rose.

Sugar output in Brazil’s center south, the main growing region, may be little changed from last year even as the cane crop rises because producers are set to make more ethanol, according to Deutsche Bank AG. As many as 199 ships were waiting at Brazil’s main ports to load corn and soybeans, up from 190 a week earlier, data from SA Commodities and Unimar Agenciamentos Maritimos Ltda. showed. More loading of grains could delay shipments of the sweetener when the harvest starts in April.

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January 31, 2013

Sugar output is poised to drop for the first time since 2009 as farmers from Mexico to India cut plantings after the biggest two-year price slump since 1999.

Global output will decline to 165 million metric tons in the 2013-14 marketing year that will start in October in most countries, according to DZ Bank AG, Germany’s largest cooperative lender. Production will be a record 172.3 million tons in 2012-13 after three straight expansions, the U.S. Department of Agriculture estimates. Raw sugar in New York will rise 9.6 percent to average 20.5 cents in the fourth quarter, the mean of nine bank estimates compiled by Bloomberg shows.

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