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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