Over the years, sugar has grown to be one of the most widely used soft commodities in the world with its number of applications going well beyond simple food production. As with all agricultural investments, sugar is known to exhibit significant volatility, making the commodity a lucrative investment tool for those looking for a sweet return. Additionally, sugar has been shown to maintain a fairly low correlation to other asset classes, such as stocks, giving investors yet another option to add meaningful diversification to their portfolios [for more sugar news and analysis subscribe to our free newsletter].
Sugar is another of the so-called breakfast commodities, along with coffee, cocoa and orange juice. Like the others, it also has a rich history. It is thought to have been first used by humans in Polynesia many centuries ago, but was not discovered by Europeans until the 11th century thanks to the Crusades. It was first brought to the Americas by Columbus in 1493 and soon thereafter it was found that the sugar cane plant grew extremely well in tropical environments [see also Jim Rogers Says: Buy Commodities Now, Or You’ll Hate Yourself Later].
Recently, we had the opportunity to speak with Sal Gilbertie, President of Teucrium, to discuss sugar and the trends surrounding this soft commodity. Gilbertie was able to provide key insight for traders and long term investors alike as he shed light on the current sugar industry and some of the developments that may make this a sweet trade in the coming weeks [see also Warning: Ignore Bill Gross’ Hard Money Prediction At Your Own Risk].
As far as soft commodities are concerned, sugar futures offer a compelling investment thesis, as their solid liquidity and high volatility make them ideal for active traders looking to make a profit. The commodity is also well-known for sticking to a relatively consistent seasonal pattern, allowing for its movements to be somewhat predictable depending which harvest season is upcoming. However, in the grand scheme of things, many traders may focus their efforts on the more popular commodities like natural gas and gold. For those looking to make a play on sugar contracts, we detail how to trade futures on this soft commodity [see also Beginner's Guide To Commodities].
Many investors are already fully aware of the benefits that trading sugar futures can offer. These contracts feature a relatively strong liquidity and also come attached with an enticing volatility that allows for both big gains and big losses depending on how you play your cards. But for those who are interested in getting a better grip on the sugar industry and how to properly trade these futures, taking a look at the underlying price drivers of this soft commodity will provide key insight into making the most informed trades. Below, we outline five of the most important factors impacting sugar prices today [see also The Ten Commandments of Commodity Investing].
Trading sugar can be sweet or sour, depending on the strength of your positions; just ask anyone who has been hit by this commodity’s recent 21-month low. But one sure way to ensure your chances of a sweet trade is to keep up with all of the latest news concerning sugar futures and overall commodity markets. In an effort to help traders stay up-to-date with everything happening in the world of sugar, we outline seven people to follow on Twitter to help keep you ahead of the game [see also The Ten Commandments of Commodity Investing].
Sugar futures are among the most popular commodities for active traders due to their relatively high volumes and enticing volatility. Though the latter fact can leave you on the receiving end of a very sour trade, it also has the potential to make a fair amount of profits for you and your portfolio. For those interested in diving into the world of sugar futures, there are a lot of factors that need to be considered on a daily basis. The most powerful thing a trader can do is to educate themselves and stay up to date with the happenings in the commodity world. Below, we outline five blogs that will be instrumental to helping you make the most informed trades on this soft commodity [see also Ultimate Guide To Sugar Investing].
This year saw a surge in popularity for commodity investing. As the years have passed, investors have seen the benefits of investing in the risky, but lucrative asset class. Commodities provide a protection against inflation as well as a low correlation to equities. One of the biggest problems within the industry was the lack of options available to investors just a few years ago. It used to be that only those with a complex futures account were able to add these securities to their portfolios. Now, there are hundreds of products to help even the smallest investor gain access to their favorite commodity investment. Below, we outline all of the commodity exchange traded products that hit the market this year [see also 12 High-Yielding Commodities For 2012].
This article originally appeared on ETFdb.com Teucrium, the company behind the first corn ETF and innovative energy commodity products, doubled the size of its product lineup on Monday with the launch of three new single-commodity funds. Two of the new additions to the fast-growing ETF lineup are first-to-market concepts, while a third will offer exposure to a soft commodity already covered by two iPath ETNs. The new Teucrium products are: