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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