How to Trade Sugar Futures
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].
Five Little Known Factors Driving the Price of Sugar
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].
Seven Sugar Traders Worth Following on Twitter
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].
Weekly Agriculture Roundup: Hot Cocoa
Like just about every other asset class, agricultural commodities have been on a wild ride over the last several trading sessions, fluctuating along with equity markets as investors have tried to evaluate the latest news out of Europe. The last week has generally been a strong stretch for agricultural and soft commodities, as a rally in stock markets and return to risky assets has created a wave of moderate optimism among investors. The following table shows the performance of several popular commodity exchange-traded products for the week ended November 8. It should be noted that each of the funds included below utilizes futures contracts to achieve its stated objectives; as such, returns may not be reflective of changes in spot prices:
Ultimate Guide To Sugar Investing
Sugar has been in production since ancient history. When the crop was first discovered, it was not plentiful, or cheap to grow and harvest, so many populations used honey as a sweetener instead. However, during various agricultural revolutions, and major improvements in farming techniques and technology, sugar became a widely used commodity. As far as food is concerned, the term “sugar” most often refers to sucrose, which comes from sugarcane or sugar beet. Though this sweet crop is most known for giving our food a more enjoyable flavor, it has a wealth of other uses, including lightening skin discoloration, and alternative fuels. Roughly 20% of the total supply of sugar will end up in what is known as the “dump market”, where governments provide subsidies for producers to sell their surplus supplies for a price much lower than the cost of production. Sugar has become a popular buy among investors, … See the full story here
