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 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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cocoa futures brokers

Cocoa premium soars

May 13th, 2013

Cocoa Futures – The premium cocoa for May delivery commands over the July futures tripled on speculation supplies in Europe will be limited before the May contract expires.

Cocoa for May delivery was 42 pounds ($54.53) a ton more expensive than the July futures by 12:58 p.m. in London on NYSE Liffe, up from 13 pounds on May 10 and compared with a discount on May 8. The May contract ends trading on May 15 and the delivery will be the next day.

“The spread should stay firm until the last trading day on speculation of limited supplies in European warehouses,” Jerome Jourquin, head of agricultural commodity derivatives at Aurel BGC in Paris, said by e-mail today.

Prices for near-dated contracts that are higher than later ones is a market situation known as backwardation and may signal limited supplies. The May contract rose 27 pounds and the July contract was down 1 pound.

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cocoa futures trading news

cocoa futures rebound

April 23rd, 2013

Cocoa futures rebounded in London on speculation producing nations in West Africa, the main growing region, have sold a lot of their crops, removing some hedging pressure from futures markets. Coffee and sugar slid.

Producing countries may have sold up to 250,000 metric tons of cocoa in the past 10 to 15 days, according to London-based futures and options brokerage Marex Spectron Group. Prices fell as much as 1.3 percent in London yesterday as money managers boosted bets on higher prices to this year’s high in the week ended April 16, leaving the market vulnerable to liquidation.

“Cocoa collapsed yesterday because speculators bought more -mostly covering shorts- than initially thought,” Eric Sivry, head of agriculture options brokerage at Marex Spectron, said by e-mail today. “With origins having sold a lot recently, selling pressure has been slightly removed.”

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coca futures trading news

cocoa futures move higher

April 19th, 2013

Cocoa futures, already headed for their biggest monthly gain since August, probably will advance further to the highest since early December, according to a technical analysis by John Caruso at RJO Futures.

Cocoa prices on ICE Futures U.S. in New York are sending bullish signals after surging above the 50-day moving average of $2,149 a metric ton on April 8 and then the 100-day average of $2,246 three days later, Caruso said. Today, after advancing to $2,348, the highest for a most-active contract since Dec. 21, cocoa is above the 200-day moving average of $2,331.

“We need to close above the $2,331 level,” Caruso, a senior broker with Chicago-based RJO, said in a telephone interview. “If we do that, this market could press on toward the $2,450 and $2,550 area before September. If the price fails to close above $2,331, we will probably see a consolidation phase between $2,260 and $2,330 before another push to the upside.”

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April 5th, 2013

Cocoa futures fell for a third day in London on speculation rain is helping boost crop prospects in Ivory Coast, the world’s largest grower. Sugar also declined.

The Daloa region, which accounts for about a third of Ivory Coast production, had three times more rain from March 21-31 than a year earlier, according to the National Meteorological Service. The Standard & Poor’s GSCI gauge of 24 commodities is down 3.3 percent this week, heading for the biggest weekly decline since October.

“There was some concern dry weather would have a negative effect in Ivory Coast so the rain may be easing those concerns,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, by phone today. “Cocoa is getting caught up with selling of many commodities.”

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