How to Invest in Sugar

Sugar was not always as widely used as it is today, as the crop was originally rare and difficult to harvest. But as technology has improved, sugar usage has grown tremendously; this commodity is used not only food production, but in a number of other applications as well.

Sugar can exhibit significant volatility, attributable to the potentially large impact of extreme weather on supply of the commodity. As such, this resource may have more appeal to short-term speculators than to buy-and-holders. However, sugar has been shown to maintain a low correlation to stocks and protect against inflation, two characteristics that may make it appealing as part of a well rounded asset allocation study.

Sugar exposure is available in many forms, including through ETPs, futures contracts, and even investments in stocks of companies that produce the sweet commodity.

Ways To Invest In Sugar

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