ICE Futures and Options Product Guide

Currently, 69 percent of the world’s sugar is consumed in its country of origin, while the rest is traded on international markets. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. Consequently, any person acting on it does so entirely at their own risk.

trading sugar

Also, the use of raw sugar in the creation of biofuels has created an interesting link between ethanol, corn, and Sugar No. 11, suggesting that sugar may one day be considered more of a biofuel commodity than a food commodity. Please bear in mind that trading futures contracts can be extremely risky since the prices of futures can swing wildly. As a result, the volatility or price fluctuations of Sugar No. 11 futures means that investors could lose all of their investment.

Shares of Sugar Companies

This edition takes into account changes in all aspects of the business including production, markets, pricing, contracts, administration and management, and the influence of the major trading blocs. STM is an invaluable training resource for all new entrants to the industry as well as providing everyone already involved in the global sugar business with vital information on its day-to-day workings. Carbonated beverages can be sweetened with any combination of these sweeteners, although high-fructose corn syrup is the most common source according to US data . In this article we aim specifically to explore sugar-sweetened carbonated beverages (i.e., nutritive or caloric sweeteners) given their link to diabetes and obesity.

He believes that small changes in weather patterns could be the catalyst for a supply disruption and a rise in prices. Global warming trends could disrupt sugar production and lead to supply shocks. As consumers in these countries accumulate more purchasing power, their appetite for sweet foods may grow as well. Most commodity products, including sugar, are priced in US dollars and, therefore, are a way to bet on a weak US dollar. Traders looking to speculate on short-term bottlenecks in supply might see sugar as an attractive trade.

trading sugar

While Sugar no. 11 is the most commonly-traded international commodities futures product, Sugar no. 16 futures prices are often higher. The discrepancy in prices wizardsdev review: web developer company is due to subsidies and a tariff program that supports U.S. sugar farmers. Your choice will depend on whether you want to own the physical assets or not.

Therefore, poor conditions such as drought, frost and insufficient rainfall can reduce its supply. If demand for sugar outweighs the supply, it can lead to a run on sugar and push the price up. Today people are more and more aware to the dangers of sugar, and look for alternatives such as corn syrup and others. This could lead to an fluctuations of sugar prices and more people looking for a new sweetener for their food and drinks. Shawn Hackett, President of Hackett Financial Advisors, believes that demand for sugar is strong and that the futures market suggests a rally might be coming soon.

The DID models utilized the average of annual per capita sales estimates over the pre- and post-intervention years. In order to detect changes in sales we time-lagged the intervention point one year after liberalization of the SSCB market access commitments to allow time for the effects of the new investment commitments to take place. Thus the intervention year is considered to be 2009 with the effects of the intervention beginning to take effect in 2010, making our pre-intervention period inclusive of the years 1999–2009, and the post-intervention period inclusive of the years 2010–2013 .

The buyer is responsible for any unloading costs when physical delivery of the actuals takes place. From a trading perspective, the minimum price fluctuation on the Sugar No. 11 contract is 1/100 cent per pound or $11.20, and there is no daily price limit. Insight and analysis from FAS’s overseas offices on issues affecting agricultural production and trade. Sugar futures are traded at the InterContinental Exchange in contract months January, March, May, July and October. The information does not represent an offer of, or solicitation for, a transaction in any investment product.

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For example, you could decide to trade or invest in the shares of a sugar-producing company, such as Suedzucker. Its shares are heavily influenced by the price of the commodity, but can offer good value compared to trading sugar itself. PepsiCo and Coca-Cola are in closer competition in Vietnam, holding respectively 40.1 % and 36.8 % of all sales in 2013, a small change from 37.4 % and 35.0 % in 2004. Vietnamese domestic companies, Chuong Duong Beverages JSC and Saigon Beverages JSC, which combined held between 13 % and 21 % of the market share from 2004 to 2012, folded after 2012. A new domestic company Saigon Alcohol Beer and Beverages Corp appeared on the market in 2013, although it accounts for only 7.8 % of the market share. A portion of this forfeited market appears to have been captured by PepsiCo, as well as Chinese company Uni-President Enterprises Corp (now holding 4.4 % of market share) and Peruvian company Aje Group (with 1.2 % of market share).

Domestic brand Zest-O-Corp holds a minuscule percentage of the market, growing from 0.1 % in 2004 to 0.3 % in 2013. The impetus for the current analysis was to explore the impacts of previously ratified trade and investment treaties within vulnerable nations of the Trans-Pacific Partnership agreement. At present, 12 Pacific Rim countries are negotiating what is thought to be the most economically significant preferential trade and investment agreement in history, representing a market of 792 million people and 40 % of global GDP . States negotiating the TPP are economically, geographically, and demographically diverse; with GDP per capita ranging from US $4000 in Vietnam to over $62,000 in Singapore . Vietnam is an especially vulnerable country involved in the treaty negotiations, with a GDP per capita over seven thousand dollars less than the next economically weakest member, Peru . The Sugar No. 11 contract is the world benchmark contract for raw sugar trading.

trading sugar

Therefore, options traders must be right about the size and timing of the move in sugar futures to profit from their trades. Futures are a derivative instrument through which traders make leveraged bets on commodity prices. If prices decline, traders must deposit additional margin in order to maintain their positions.

Follow-up comments relating to AmCham’s Jan. 14 meeting with Ministry of Finance concerning proposed excise tax on carbonated beverages. As a matter of fact, Europe is the second largest sugar exporter in the world. Should import and export rates change, it could affect the supply numbers which could lead to a massive change in sugar price. The content on this website is provided for informational purposes only and isn’t intended to constitute professional financial advice. is not liable for any damages arising out of the use of its contents.

Sugar – data, forecasts, historical chart – was last updated on January of 2023. Sugar crops, much like coffee and cocoa crops, require plenty of sunshine and rainfall. Naturally, poor weather conditions have a troublesome effect on sugar supply. The Director-General for Agriculture and Rural Development chaired the HLG, composed by representatives of all EU countries. You currently don’t have access to this book, however you can purchase separate chapters directly from the table of contents or buy the full version. Statement by Canadian agri-food trade alliance on trans-pacific partnership trade talks.

Commission publishes latest forecasts on EU feed protein production and trade

One way to trade in sugar is through the use of a contract for difference derivative instrument. The value of a CFD is the difference between the price of the shares at the time of purchase and the current price. This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information.

Conceptualizing and addressing the role of structural drivers of diet-related health outcomes, including trade and investment policy, is an important development in tackling the complexity of the problem. Two broadly differing frameworks have defined public health interventions addressing obesity. The individualizing framework, both more pervasive and market-friendly, places the onus on individuals and their ‘lifestyle’ choices, with little to no government regulatory action concerning the food industry. The systemic framework puts the onus on wider environmental factors and encourages governments to act on behalf of the public, including regulating food markets from production through to consumption . This paper attempts to unpack some of the complexity at the systemic level by examining the role of trade and investment in the creation and maintenance of obesogenic food environments. Another study attempted to empirically link liberalization to diet-related health outcomes, such as obesity, finding support for the impact of economic globalization over and above those accounted for by GDP and urbanization .

  • Should import and export rates change, it could affect the supply numbers which could lead to a massive change in sugar price.
  • Naturally, poor weather conditions have a troublesome effect on sugar supply.
  • A new domestic company Saigon Alcohol Beer and Beverages Corp appeared on the market in 2013, although it accounts for only 7.8 % of the market share.

Sugar is a major source for ethanol production and therefore, crude oil futures prices and the demand for ethanol impact the international price of sugar futures. Sales of SSCBs in the Philippines are more heavily concentrated within foreign companies (98.3 % of all sales in 2013, up from 94.5 % in 2004) than in Vietnam (82.6 % of all sales in 2013, up from 74.0 % in 2004). Within the Philippines, Coca-Cola is the dominant player accounting for 72.1 % of all sales in 2013 (a slight drop from 74.2 % in 2004); PepsiCo is a distant second, with 14.3 % of sales in 2013 (relatively unchanged from 14.4 % in 2004). Canadian company Cott Corp saw a notable increase to 11.9 % of sales in 2013 (up from 5.9 % in 2004) ostensibly drawn from sales previously captured by the other category, which dropped from 5.4 to 1.5 % over this period.

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When the US dollar is weak, it costs less to buy sugar in other global currencies, and a larger amount when USD is high. The price of Sugar No. 11 is impacted by a range of factors that impact supply and demand for the commodity. Supply and demand are, as usual, important to the process of determining the price of sugar. However, as mentioned, sugar is used by almost everyone so more people have access and effect the price. With an astounding selection of over 250 instruments, AvaTrade gives you the option to trade many commodities. Enjoy AvaTrade’s platforms to perform Sugar CFD trading, and see how sugar can sweeten not only your coffee, but also your account.

Commission launches public consultation on review of the EU marketing standards for agricultural products

Many governments heavily subsidize their sugar manufacturers to “dump” cheaply priced sugar in the market. Sugar futures began trading in the United States in 1914 on the coffee, sugar and cocoa exchange in New York and the New York Board of Trade. Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. Visit /en-sg/terms-and-policies for the complete Risk Disclosure Statement.

Private storage aid is granted when taking into account average recorded Union market prices, the reference thresholds and production costs. The European Commission may grant this aid in the case of a particularly difficult market situation or economic development having a significant negative impact on the margins of the sector in order to keep a certain volume of sugar out of the market during a certain period. The CMO rules foresee additional support measures in case of severe market disturbances due to sharp increase or decrease in prices, amongst others.

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Any increase in consumption patterns could cause a surge in price, but the longer-term outlook has been negative. We’re sorry, but the service you are attempting to access may not be intended for your country of residence. The United States Department of Agriculture notes lower supplies in China and Mexico could offset record production in the near future. API GATEWAY Direct access to our data from your apps using any programing language. IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited.

In the next five years, PepsiCo and Coca-Cola project their main source of growth in profits will come from developing countries . Since its launch, Sugar Trading Manual has established itself pepperstone broker as the definitive information source for the sugar market worldwide. It is compiled from contributions by some of the most senior and widely respected figures in the international sugar trade.