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Sugar futures and options quick facts:
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112,000 pound contract size
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One cent move equals $1,120
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Trades March, May, July, October
2/19/12 Sugar futures prices traded mostly sidways this week as
a lack of new news and a rising U.S. dollar pressured the
market. It seems that there is almost daily news about Greece
and the Euro Zone and the problems within that financial system
but news that Iran stopped selling its oil to British and French
companies may push oil and other commodity markets higher in the
coming weeks.
2/10/12 Sugar futures prices traded mostly sideways this week
along with most commodities. More uncertainty about Greece and
whether it will remain part of the European Union or not.
Euro-Zone finance ministers decided to withold aid from Greece
this week. This in turn strengthened the U.S. dollar and
pressured most commodities lower after spending most of the week
in a bullish stance.
2/3/12 Sugar futures prices sold off this week in spite of the
U.S. dollar continuing its slide. The USD is now down 3 full
basis points over the last few weeks which is helping to push
many commodity markets higher. Friday's strong jobs report is
also helping commodity prices strengthen. It also seems that bad
European Union headlines are having less affect on the markets
and the worst case may already be factored into many of these
markets.
1/27/12 Sugar futures prices are trading mostly lower this week
in spite of the relative bullishness of the rest of the
commodity markets. The bullish news was the weakening U.S.
dollar that continues its 2 week slide of about 3 full basis
points which helps push dollar denominated commodity markets
higher. The FOMC meeting left rates unchanged and opened the
door for more quantitative easing by the Federal Reserve Bank.
European sovereign debt issues and saber rattling from Iran
seemed to have little affect on the markets.
1/20/12 Sugar futures prices traded mostly higher this week as
the recent influx of capital from hedge funds and other large
speculators into the commodity markets and especially the soft
sector pushed many commodity markets higher. The recent
successful debt auctions from Spain and France helped stabilize
the European Union for the near term and in turn weaken the U.S.
dollar.
1/6/12 Sugar futures prices traded mostly sideways to down this
week. The U.S. dollar rose to new contract highs as concerns
over European banks pushed the Eurocurrency down to a 16 month
low. New tensions with Iran and its nuclear program has pushed
American and British aircraft carriers to enter the Persian Gulf
and the Straits of Hormuz and in turn pushed crude oil prices to
the highs.
12/23/11 Sugar futures prices rallied this week with many other
commodity markets as the U.S. dollar sold off from its contract
highs in the thin volume holiday trade that is typical for this
week and next. Iran tensions and possible sanctions pushed oil
higher and positive economic reports out of the U.S. and Europe
also pushed investors back into risk assets like stocks and
commodities.
12/16/11 Sugar futures prices sold off this week along with most
other commodity markets. The lack of an additional quantitative
easing announcement by Bernanke and the Federal Reserve Bank at
the FOMC meeting surprised some market participants and
pressured the markets. More bad news out of Europe and very
positive news from the U.S. economy pushed more assets in to the
U.S. dollar as it hit another high kept the stock markets
trading down to sideways as well.
12/9/11 Sugar futures prices traded mostly sideways to down this
week again as most of the commodity and stock markets took their
directional cues from the European headlines again. In other
words, bad news out of the European Union pressured the markets
and good news helped push markets higher. The week ended on a
positive note as the European Union summit yielded ideas of
tightening anti-deficit rules and punishments for member
countries. This heartened the markets as it symbolized the idea
that forced accountability of member nations may curb government
spending.
12/2/11 Sugar futures prices rallied this week along with many
other commodity markets. Crude oil broke through $100 a barrel
as Iranian students broke into the United Kingdon embassy in
Tehran. Positive job growth in the U.S. and other encouraging
economic data helped many commodities push higher. Also adding
to the bullish tone was stability in Europe as a concerted
effort by 5 central banks to add liquidity to Europe eased some
fears and a sell off in the U.S. dollar also helped commodity
prices.
11/25/11 Sugar futures prices traded mostly down along with the
majority of the commodity markets. The U.S. dollar index rallied
almost to its October 4th high which is coincidentally when many
commodity markets' made their recent contract lows. The recent
German bond auction was a failure and couldn't managed to sell
all of the bonds issued as more problems out of Italy and Greece
hurt the European Union as investors flee to cash and the U.S.
treasury markets.
11/18/11 Sugar futures prices traded mostly down this week as
more problems came out of the European Union suppressing most
commodity rally attempts. The talk of Italy potentially
defaulting on its debt and Italian bond yields breaching the
critical 7% area hindered most bullish support for most markets.
The European Central Bank chose to purchase Italian and Spanish
bonds to support the markets and prove that they would support
the teetering European Union and its weak links from default.
11/4/11 Sugar futures prices traded mostly sideways this week as
more uncertainty about Greek and Italian solvency added to
European Union woes. Also adding to the uncertainty was the
bankruptcy declaration by MF Global who supposedly was
overleveraged in European high risk assets and it was a very bad
bet. This uncertainty pushed assets towards the U.S. dollar and
U.S. treasuries pushing both higher on the week. The strong
dollar often depresses dollar denominated assets like
commodities.
10/14/11 Sugar futures prices rose again this week as the
positive rhetoric out of the European Union and the idea that
the EU has plenty of assets to back up its support of failing
economys like Greece, Spain and Italy has led investors back
into stocks and commodities. The U.S. dollar continues its fall
which is also helping out the dollar demoninated commodity
markets become more bullish.
10/7/11 Sugar futures prices traded sideways this week from its
lows. The market moving news of the week was Moodys' cutting the
senior debt and deposit ratings of 12 UK financial institutions
while at the same time the European Commission put together a
possible coordinated European bank recapitalization plan to
stabilize weak links in the financial chain like Greece and
Italy. Market volatility continues to be extreme in stock and
commodity futures contracts.
9/30/11 Sugar futures prices are one of the few commodities that
rallied this week in spite of most other commodity markets
selling off as more problems with Greece and its potential
default to its bond holders and other European woes has led to
an extremely volatile trading environment for stocks and
commodity investors. The U.S. dollar is also near its recent
highs which is also hindering the bulls for now.
9/23/11 Sugar futures prices sold off this week along with just
about every other commodity as more problems out of the European
Union and Federal Reserve Bank chairman Ben Bernanke saying that
the U.S. economy was probably going to slip back into a
recession. This fear of a double dip global recession sent
investors fleeing out of the stock and commodity markets around
the globe and strengthened the U.S. dollar significantly.
9/16/11 Sugar futures prices traded mostly sideways to down this
week along with most other commodity contracts as more European
soveriegn debt problems (Greece) and more bad economic reports
out of the United States have come together to add more
uncertainty about the world's economic future. The weakening
U.S. dollar did little to prop up commodity prices. Volatility
can be extreme at times as the market reacts to economic
reports.
8/19/11 Sugar futures prices had an extremely volatile week
along with most of the rest of the commodity markets. The stock
market indices were quite volatile and affected most other asset
classes as European Union problems resurfaced again and put many
investors in doubt about future U.S. and global growth prospects
over the near term.
8/5/11 Sugar futures prices have been mostly down this week.
This week's main stories are about Europe's continued problems
and the foreseeable end of the European Union as the PIIGS
continue to harm. A slower global economy and the 10% correction
in the U.S. stock markets have many commodity investors heading
for the sidelines.
7/29/11 Sugar futures prices have been trading mostly sideways
this week as the United States faces a political impasse on
raising the debt ceiling. This has led to talk about the U.S.
losing its AAA credit rating and potentially defaulting on its
debt obligations. The U.S. dollar is trading sideways near its
lows probably because things seem to be even worse in Europe.
Many of the other commodity markets have also been trading
sideways for the most part.
7/15/11 Sugar futures prices are trading sideways this week as
Ben Bernanke left the door open for QE3 or printing more U.S.
dollars to be used for buying treasuries to help buoy the
economy. Also the European Bank Authority said 8 out of 90 banks
failed their stress tests this week. 5 were from Spain, 2 from
Greece and one from Austria. The U.S. dollar sold off this week.
Brazil's UNICA reduced its estimate for the sugar production in
the central southern region to 32.4 million tons.
7/1/11 Sugar futures prices rallied by about 1 cent per pound
this week as the U.S. dollar lost about 2 basis points once the
markets decided that the greek soveriegn debt issues would be
resolved for the short term in spite of the agreement that most
analyst share that Greece is doomed to be bankrupt sooner or
later. Many commodity sectors look to be selling off such as the
precious metals, energies and grains seem to be trending
sideways to down over the near term.
6/24/11 Sugar futures prices are trading mostly higher by about
one cent per pound this week in spite of the collapse in crude
oil prices. The Obama administration decided to release 30
million barrels of oil from the strategic petroleum reserve to
help pressure energy prices. The International Energy Agency
plans to add 2 million barrels a day from non-OPEC reserves.
Also pressuring the markets is the idea that Greece will default
sooner or later and may be released from the European Union in
order to strengthen the Euro. Reports of slower growth out of
India and China is also pressuring commodity prices in general.
6/10/11 Sugar futures prices rallied about 2 cents per pound
this week in spite of weakness in many of the other soft
markets. This current rally seems pretty uniform for now and has
the potential to continue if gasoline prices remain high.
6/3/11 Sugar futures prices rallied this week in spite of quite
a bit of bad U.S. economic data in manufacturing, housing and
jobs has consumer confidence falling along with the stock market
and most of the commodity markets. Many economists fear a soft
patch in the economy this summer and a slowing of Asian demand
for many commodities as attempts to battle inflation by raising
rates are slowing growth.
5/27/11 Sugar futures prices are trading sideways along with
most of the other commodity markets as large speculators such as
hedge funds seem to be exiting the riskier assets. The lack of
aggressive buying and selling of these futures contracts has
caused many of them to trade sideways in small trading ranges.
The recent 3 cent rally in the US dollar should have been more
of a catalyst pushing commodity prices higher but this has
largely been ignored. This is most likely caused by the
perception that China's economy may be slowing down as well.
5/20/11 Sugar futures prices rallied about 1 cent per pound this
week even as the US dollar continues to strengthen and investors
seem to be heading for the exit when it comes to their riskier
assets and are getting in to cash and cash equivalents. The
volatility in many markets has dropped considerably as some like
silver, gold, crude oil and cotton are consolidating sideways.
This in turn is bringing option premiums back down to more
normal levels for some markets as this volatility premium is
taken out of the options.
5/13/11 Sugar futures prices sold off again this week as the
market digests the idea that Greece may default on its debt just
a year after this same predicament that forced Germany to infuse
money into the system. This news crushed the Euro Currency and
pushed the US dollar higher which in turn hurt most commodity
prices and pushed volatility much higher. Quantitative easing is
set to end this summer which might be why the stock market is
soft in spite of energy prices coming down violently. Option
premiums are very high for most commodities because of the
recent volatility.
5/6/11 Sugar futures prices sold off this week along with most
of the other commodity markets. A cocktail of bearish happenings
have been a catalyst initiating a huge exodus out of risk assets
to reduce investors' risk exposure. The ECB president Trichet
let the market know that a ECB rate hike is not a done deal in
July which in turn pushed the US dollar up a full basis point.
Also hitting the markets were the CME group's increase in silver
margin requirements which totalled 5 increases over the last 2
weeks which pushed weak longs out of the market and caused
silver to correct by about 25% making it the worst sell off
since the early 1980's. Lastly, many US economic reports have
been weaker than expected which is weakening the confidence of a
strong economic recovery in the US over the near term.
4/29/11 Sugar futures prices sold off by about 2 cents per pound
this week. The FOMC meeting left Bernanke signalling that QE 3
would not happen and QE 2 would end in June and that interest
rates will probably stay on hold for a while leaving the US
dollar to get crushed as other countries plan on continued
interest rates hikes to fight inflation and attract foreign
assets to the stronger currencies.
4/22/11 Sugar futures prices rallied about 1.5 cents per
pound this week along with most of the other commodities as the
US dollar hit levels not seen since the "Great Recession" summer
of 2008. The market seems to be factoring in an unwillingness by
the United States' federal reserve bank to raise interest rates
in spite of the fact that many other economies like Australia,
China and the European Union are raising interest rates. This
rising interest rate environment draws money away from US
investments into stronger currency assets.
4/8/11 Sugar futures prices sold off by about 1.5 cents per
pound this week bucking the uptrends of many other commodity
markets as the bulls seem to have control for now. Gold hit an
all time high and crude oil broke through $110 a barrel pulling
other commodities with them. The US dollar coincidentally hit
new contract lows this week as well. The new earthquake in Japan
seems to be a non-event this time for the markets.
4/1/11 Sugar futures prices are mostly sidways this week again
trading around 27 cents per pound. High gasoline prices seems to
be giving ethanol demand and production a boost but supplies
seem to be ample around most of the world. Sugar option premiums
are high.
3/25/11 Sugar futures prices were mostly sideways this week in
spite of the fact that the risk trades like commodities were the
weekly theme. The Japan nuclear scare seems to have been averted
for the most part and the markets factored in a worst case
scenario which caused the massive sell off last week. The
tensions in the Middle East seem to be growing which pushed
crude oil prices over the $105 level. The US dollar has been
sliding for most of the month of March which is also helping
push most commodity futures prices higher.
3/18/11 Sugar futures prices came down this week along with most
of the commodity and stock markets as investors try to figure
out what affects the tsunami and its destruction of the cities
and nuclear plants in Japan will have over the short, medium and
long terms. Japan's economy is the 3rd largest in the world and
demand destruction for some commodities may occur.
3/11/11 Sugar futures prices have been selling off after a
volatile few weeks in the commodity markets. Geopolitical issues
in the Middle East put the bias in the commodity markets in the
hands of the bulls for the last few weeks but the buy the rumor
sell the fact side of the equation and China's first trade
deficit in many years seems to be behind the massive liquidation
of most of the commodity markets. Increased supply from Brazil
and potentially higher exports from India are also pressuring
the market.
3/4/11 Sugar futures prices rallied again this week by about one
cent per pound as the world wonders about the violence and
ubiquitous unrest in northern Africa and the middle east.
Egyptians got rid of their despot. Libya is trying along with
Bahrain, Tunisia and others which is pushing crude oil prices
sky high again. Higher oil prices are very inflationary and
helps push the bias of all dollar denominated commodities
higher.
2/11/11 Sugar futures prices traded sideways in spite of the
rally with most of the soft markets this week. The uprising in
Egypt by the people to oust the long time president out of power
has turned violent and caused many commodity markets to become
very volatile because of the belief that turmoil may spread to
other Muslim countries near Egypt. On February 10th the ousted
president appointed his vice president as ruler much to the
dismay of the protesters.
2/4/11 Sugar futures prices rallied this week as worry about the
Egyptian uprising spreading to other Muslim countries had the
markets on edge. In spite of the Suez canal being only
responsible for about 3% of the oil shipping, the oil markets
rallied and pulled many other markets higher as well. The idea
that inflation and especially food and energy inflation is
starting to get traction in the media and may have a significant
impact of the economy soon.
1/28/11 Sugar futures prices prices rallied back up near the
highs again this week after the massive sell off during the
weeks before. Sugar prices are back up near contract highs as
the strength in the softs markets in general are keeping prices
high. Sugar option premiums are high.
1/21/11 Sugar futures prices bucked the trend of most of the
other commodity markets as they sold off violently in
anticipation that China will step up its efforts to quell
inflation by making it harder to get money out of its main banks
by increasing reserve requirements and raising interest rates.
12/24/10 Sugar futures prices are still running as the third
year in a row supplies are expected to fall short of demand.
Tight stocks and the increased cost of production keeps sugar
near 30 year highs. The market is digesting rising demand from
non producing countries. The week before and after Christmas are
notoriously thinly traded and the markets can have very volatile
price swings because of the lack of trading volume. Many money
managers call it quits for the year in early December to lock in
before year end.
12/17/10 Sugar futures prices have been rallying toward the
highs again in spite of the number one consumer, India, becoming
an exporter of sugar again because of a good growing season and
the idea that supplies will be ample for domestic use.
12/3/10 Sugar futures prices have been running this week as the
European Union has decided to give Ireland the loan it needs so
that it won't have to default on its debt. Also helping the
market is the idea that the worst of the problems in the United
States are in the past and its economy will likely begin to grow
at a better pace than expected. There is also the idea that
capital gains taxes and taxes on dividends will not be
implemented now that republicans are in charge.
11/19/10 Sugar futures prices sold off again this week as China
raised interest rates in an attempt to slow its overheating
economy and inflation. Also pressuring the commodity markets was
the idea that Ireland may default on loans might lead to more
Eurozone economic problems coming soon.
11/12/10 Sugar futures prices are correcting significantly after
the huge run up in prices. The most prevelant perception is that
the global recovery may be stalling based on worse than expected
economic reports as of late and the idea that China will hike
interest rates to battle inflation which should push commodities
lower.
11/5/10 Sugar futures prices are still heading higher as the
FOMC meeting yielded more quantitative easing by the Fed.
Printing more money should lead to high inflation or
hyperinflation for the next few years. Especially when you
consider the fact that the Fed bought so much of the toxic real
estate assets from Freddie Mac and Fannie Mae. It makes sense
that they won't raise rates to fight inflation because it would
cost the government billions of dollars.
10/22/10 Sugar futures prices rallied again this week and are
back near the highs again. Tight supplies and estimates of a
zero surplus next year are keeping prices at contract highs. Too
much rain in Australia are hampering crop harvests and the
recent typhoon damage to China's crop is unknown.
10/15/10 Sugar futures prices are back up near the 30 year highs
hit a couple of years ago as the soft sector has taken off
recently with cotton, sugar, cocoa and coffee all hitting multi
year highs recently. Sugar option volatility premiums are high.
10/8/10 Sugar futures prices hit another high this week as the
La Nina in the equatorial Pacific Ocean is affecting South
America with dry weather. The drought conditions in Brazil are
expected to hurt the sugar cane output for that region for the
first time in 11 years for the 2011 crop.
9/24/10 Sugar futures prices are still high as commodity funds
have been active buyers and perceived supply tightness are
keeping prices high.
9/17/10 Sugar futures prices continue to rally as massive
commodity fund buying is still pushing many commodities in the
soft sector higher like sugar, cotton and coffee. Sugar options
have high premiums right now because of the recent volatility.
9/10/10 Sugar futures prices rallied again this week over a
penny per pound based on large commodity fund buying in the food
and fiber sectors in an attempt to diversify away from the
equities into non correlated investments. There has been a
strong correlation between energy and grain contracts with the
stock market recently.
8/20/10 Sugar futures prices broke through the recent highs this
week in spite of the expectations of a huge global crop from
Brazil and India. India's crop is expected to be at least 23
million tons which will leave plenty of supply available for
exports.
8/13/10 Sugar futures prices rallied this week from a 3 week low
as excessive rains in Brazil is causing shipping delays for
sugar and other commodities. The delays are expected to persist
over the near term. Sugar has rallied roughly a cent this week.
8/6/10 Sugar futures prices are coming down as higher output
from Brazil and India ( the number one and number two producers)
should be ample considering the current demand for sugar. Sugar
option premiums are high.
8/2/10 Sugar futures prices are still trending higher in spite
of an expectation for a 5 million ton surplus this season.
India's harvest is projected at 26 million tons and consumption
at 23 million tons for the coming harvest.
7/24/10 Sugar futures prices rallied nearly a cent this week as
the US Dollar continues to weaken and other soft market
commodities have been running higher recently. High unleaded gas
prices may also be keeping prices up for the near term.
7/10/10 Sugar futures prices traded higher this week as dry
weather in Brazil might hurt the yields of their sugar cane crop
next harvest. The recent USDA supply and demand report showed US
ending stocks up from 764,00 to 952,000 tons.
7/2/10 Sugar futures prices are trading within a 1.5 cent range
recently as bearish crop pictures and a slower global economy
battle with demand for ethanol out of Brazil. The recent sell
off in the US Dollar may help support prices.
6/25/10 Sugar futures prices rallied this week in spite of the
recent estimate of the USDA saying worldwide production will be
up 8% in 2010-2011. Sugar prices hit a 2 month high.
6/11/10 Sugar futures prices rallied this week after losing 50%
of its value over the last couple of months. The recent USDA
report showed US ending stocks come down from 844,000 to 764,000
short tons. The world outlook is for an increase in supplies as
many producers tried to take advantage of the 30 year highs in
prices by planting more.
6/4/10 Sugar futures prices rallied this week in spite of the
overall weakness in the commodity sector and the estimation the
there would be a world production surplus for the first time
since the 2007-2008 season for sugar supplies.
5/28/10 Sugar futures prices sold off this week as the USDA
estimated that world production would go up from 157.2 to 163.8
million tons in 2010-11.
5/21/10 Sugar futures prices came down with the rest of the
commodity markets this week as the European problems stemming
from Greece and the other PIIGS are expected to hurt demand for
many commodities. Investors seem to be choosing cash over stocks
and commodities for now. There are rumors of Pakistan and China
buying sugar.
5/14/10 Sugar futures prices are still coming down this week.
The recent USDA report showed US ending stocks at 894,000 tons
down from 1.23 million tons.
5/7/10 Sugar futures prices sold off again this week to a 14
month low as the Greece problems pressured many markets as
investors attempt to decrease their risk appetites by pushing
assets into gold, US Dollars and US Treasuries as a safe haven.
4/25/10 Sugar futures prices are still selling off from the
recent 30 year highs to the lowest close in the last 11 months.
The recent strength in the US Dollar is also helping keep prices
down.
4/16/10 Sugar futures prices bounced after selling off for the last 10
weeks. The US Dollar is begining to weaken and high unleaded gas
prices may push sugar producers to turn to ethanol instead of
using it as a food.
4/9/10 Sugar prices are still collapsing from the recent 30 year
highs. Sugar hit a new 10 month low this week in spite of the
idea that many economies around the globe are improving which
should in turn increase demand for physical commodities.
3/27/10 Sugar prices came crashing down again this week as the
global deficit is looking more like it will be offset by some
huge sugar cane crops from Brazil. Sugar prices hit a 10 month
low this week.
2/26/10 Sugar futures prices fell this week from the 30 year
highs to a 9 week low as the idea that prices got a little ahead
of themselves based on the global tight supplies. Many buyers
were unwilling to pay the recent high prices for raw sugar. The
recent strength in the US Dollar is also pressuring many
commodity markets. Sugar option premiums are high.
2/12/10 Sugar future prices rallied this week as the idea that
Europe will help Greece with its financial problems weakened the
US Dollar and caused most commodity markets to rally.
Agrimoney.com increased its estimate of the 2009-10 world sugar
deficit form 8.3 to 11.9 million tons.
2/5/10 Sugar futures prices came down this week along with many
of the other commodity prices as the recent strength in the US
Dollar is expected to diminish demand for commodities. India's
government said that its sugar mills had to sell some of their
sugar supplies every week. Mills had been hoarding sugar in the
hopes of getting higher prices.
1/30/10 Sugar futures prices continue to rally in spite of most
of the rest of the commodity markets selling off. The European
Union is considering increasing exports of sugar to take
advantage of high prices and to help with the global tight
supplies situation. Sugar prices hit contract highs this week.
1/22/10 Sugar futures prices rallied this week to contract
highs, unlike most of the other commodity markets in spite of
the rise in the US Dollar and the idea that China is trying to
hold back its economy by raising rates and increasing the amount
of capital reserves its banks must keep will slow demand for
many commodities.
1/15/10 Sugar futures prices seemed to be stabilizing as the
Indian government is allowing sugar sales again and the recent
rise in the US Dollar is pressuring prices.
1/8/10 Sugar futures prices rallied to another contract high
this week in spite of the recent strength in the US Dollar as
tight supplies still look to be an issue for the near future.
1/1/10 Sugar future prices rallied to 28 year highs as the
Indian government extended its ban on trading sugar futures on
its exchange until September of 2010 because of the extremely
tight global supply situation. Sugar options premiums are high.
12/11/09 Sugar futures prices rallied this week as the global
supply situation is still very tight. The rally occurred in
spite of energy market price declines and the recent strength in
the US Dollar.
12/4/09 Sugar futures prices fell this week as the upbeat US
Jobs report pushed the US Dollar dramatically higher.
11/28/09 Sugar futures prices are still trading sideways to down
this week as the idea that the global supply deficit may already
be factored into prices is battling the idea that higher energy
costs will push Brazil into using its sugar production for
ethanol at the expense of sugar for human consumption. Sugar
option premiums are high.
11/20/09 Sugar futures prices are still coming down this week in
spite of the US Dollar hitting another contract low. Indian
farmers are withholding sugar from the mills because of
expectations of higher sugar prices. The USDA estimated the
2009-10 world sugar production to be at 153.5 million tons, up
6% from a year ago.
11/13/09 Sugar futures prices sold off this week from the highs
to the recent support levels as the USDA report estimated that
US ending stocks grew from 876,000 tons to 1,016,000 tons.
11/6/09 Sugar futures prices sold off this week in spite of the
global tight sugar supplies and rising prices in India's sugar
because of the scarcity. Sugar option premiums are high.
10/24/09 Sugar futures prices sold off from the 28 year highs as
the Indian government estimates that its sugar production will
increase from 16 million tons to 17.5 million tons. This is up
from the earlier estimate of 15 million tons.
10/12/09 Sugar futures prices sold off from the 28 year highs as
profit taking takes over since the massive run to 1981 price
highs. Sugar prices have seen massive fund and speculative
buying and selling over the recent few weeks.
9/25/09 Sugar futures prices fell as the US Dollar strengthened
and the commodity markets in general are selling off. The global
supplies are still tight and conditions are not expected to
improve any time soon.
9/18/09 Sugar futures prices are still near the highs as the
lack of supplies is battling to keep up with the global demand.
Also helping prices are the weakening US Dollar and the idea
that the global economy is improving.
9/11/09 Sugar futures prices are selling off from the highs.
India's government recently told sugar mills that there is a
limit to the amount of sugar that they can store. Sugar
stockpiles cannot be larger than a 15 day supply in an attempt
to make sugar available to the public. Sugar option premiums are
high.
9/4/09 Sugar futures prices sold of from the recent 28 year
highs in spite of the recent overabundance of rain in Brazil and
the lack of abundance of rain in India and the recent prediction
by the International Sugar Organization increasing the amount of
the deficit from 4.75 to 8.40 million tons. Sugar option
premiums are high.
8/21/09 Sugar future prices are trading sideways near the recent
highs at around 22 cents per pound. The lack of new bullish or
bearish news has the market consolidating sideways for now.
Sugar option premiums are high.
8/7/09 Sugar futures prices are at the contract highs as the
expectation for India to increase imports due to a lack of rain
and potential Brazilian crop problems. Sugar option premiums are
high.
7/31/09 Sugar futures prices are near the highs as rain issues
in India and Brazil may curb production and end up causing a
world production deficit. Sugar option premiums are high.
7/20/09 Sugar futures prices are still up this week in spite of
lower gasoline prices and the recent rains in India are likely
to help the sugar cane crop. The weakening US Dollar is also
helping sugar prices. Sugar option premiums are high.
7/10/09 Sugar futures prices sold off this week as the slow
world economy and lower ethanol production may hurt demand. The
recent USDA report showed US ending stocks down from 459,000 to
359,000 tons. Sugar option premiums are high.
7/4/09 Sugar futures prices may have made a top as the new
contract highs were followed by a sell off. The markets are
expecting a global deficit in sugar supplies. Sugar option
premiums are high.
6/21/09 Sugar futures prices sold off this week along with the
rest of the soft markets as the US Dollar rebounds from the lows
and crude oil and unleaded gas sell off. Sugar option premiums
are high.
6/5/09 Sugar futures prices are down again from the recent highs
and profit taking is blamed. Global supplies are still
relatively tight. Sugar option premiums are high.
5/30/09 Sugar futures prices recently sold off from the highs as
overbought markets often due. The Indian government recently
suspending the trading of sugar futures contracts for the rest
of 2009 in an attempt to protect domestic supplies. High crude
oil prices are also helping prices. Sugar option premiums are
high.
5/22/09 Sugar futures prices are near the highs as a world
production deficit in 2008-9 crops and higher ethanol demand are
expected to use up supplies. The USDA is expecting the lowest
stocks to usage ration in 16 years. Sugar option premiums are
high.
5/15/09 Sugar futures prices are coming down from the recent
highs in spite of the USDA report showing US ending stocks down
form1.192 to 289,000 tons and the governments restrictions on
imports. Sugar option premiums are high.
5/8/09 Sugar futures prices are still running higher to the
highest close in 8 months. Helping prices is the estimate that
Brazil will produce more ethanol this year. Sugar option
premiums are high.
4/30/09 Sugar futures prices are rallying based on the idea that
Brazil's sugar crop is going to be smaller than expected. Sugar
option premiums are high.
4/23/09 Sugar futures prices are trading in a one cent range
between 1250 and 1350. This is occurring as bullish information
such as India being a net importer clash with bearish
information such as falling energy prices. Sugar option premiums
are high.
4/10/09 Sugar futures prices are moving sideways as lower energy
prices battle with expectations that Indian sugar output may
fall 11 million tons. The USDA estimates that US ending stocks
up from 981,000 to 1.29 million tons. Sugar option premiums are
high.
3/27/09 Sugar futures prices are trading in a sideways pattern
as a slow world economy is making the demand picture for sugar
hard to predict.
3/20/09 Sugar futures prices rallied 1.50 cents this weeks as
inflation may soon replace the deflationary cycle that we are
currently in, which is the worst since the Great Depression. The
recent move by the fed to print a trillion dollars and use them
to buy treasuries has significantly decreased the value of the
US Dollar. Sugar option premiums are high.
3/13/09 Sugar futures prices are trading sideways in spite of
the recent USDA supply and demand report showing a drawdown in
world ending stocks of 85,000 short tons. Sugar option premiums
are high.
3/7/09 Sugar futures prices sold off this week as the poor
economy and the massive sell off in the stock market is
pressuring prices. Sugar option premiums are high.
2/27/09 Sugar futures prices are rallying this week to 5 month
highs. The International Sugar Organization forecast for a 4.3
million ton deficit in the 2008-9 crop year helped prices rally.
India, the world's largest consumer of sugar, is expected to
become a net importer of sugar this year. Also helping prices is
the rally in unleaded gas prices which stimulates cane ethanol
production in Brazil. Another bullish factor is Pepsi's
announcement that it will stop using high fructose corn syrup in
its drinks. Sugar option premiums are high.
2/13/09 Sugar futures prices are still heading higher as the
USDA report showed US ending stocks of sugar down form 1.072 to
1.066 million tons. Sugar looks to be the leader in the soft
market right now. Sugar option premiums are high.
2/6/09 Sugar futures prices are rallying as the softs sector of
the commodity market is gaining strength. Sugar production in
India was down 20% from October to January. A world production
deficit is expected in 2008-9. Sugar option premiums are high.
1/30/09 Sugar futures prices are still holding recent gains as
the uptrend in sugar is still holding. Sugar futures prices have
been rallying in spite of weakness in the unleaded gas markets.
Sugar option premiums are still high.
1/16/09 Sugar futures prices were steady this week. The USDA
estimates that US ending stocks were up from 961,000 to 1,072
tons. Sugar option premiums are high.
1/10/09 Sugar futures prices rallied based on the expectation
that India and Thailand will have smaller sugar crops this year
and strong gasoline prices. Sugar option premiums are high.
12/27/08 Sugar futures prices are holding steady in spite of
lower gasoline prices and demand destruction around the world.
Sugar option premiums are high.
12/19/08 Sugar futures prices have been strong recently as the
US Dollar has been giving back 60% of its recent rise. Sugar
option premiums are high.
12/12/08 Sugar futures prices rallied along with the rest of the
commodity markets as the US Dollar fell sharply from its highs.
The USDA estimates that world ending stocks increased from
907,000 to 961,000 tons. Sugar option premiums are high.
12/05/08 Sugar futures prices fell with the rest of the
commodity markets as the global economy worsens and the US
Dollar runs higher. Sugar option premiums are high.
11/30/08 Sugar futures prices are trading sideways as unleaded
gas prices seem to be stabilizing. Sugar option premiums are
high.
11/21/08 Sugar futures prices are still coming down with
unleaded gas. Sugar option premiums are high.
11/7/08 Sugar futures prices are still range bound and rallies
are met with harsh resistance. Sugar rallied to a one month high
but sold back down as the US Dollar strengthened and gas prices
came down. Sugar option premiums are above average.
11/1/08 Sugar futures prices are holding their lower levels as
unleaded gas and corn prices are still low. FO Licht estimates
the sugar consumption is up 1.8% in 2008-09 and will outpace
production by 472,300 tons next year. Sugar option premiums are
high.
10/24/08 Sugar futures prices are coming down with the rest of
the commodity markets as the massive deleveraging of the stock
and commodity markets. The sell off in unleaded gas is expected
to hurt ethanol demand especially when combined with the
expectation of a global recession. The repatriation of US
Dollars back into the US is helping the US Dollar rally to 3
year highs. Sugar option premiums are high.
10/10/08 Sugar futures prices are selling off again pressured by
the USDA US ending stock report showing stocks up from 505,000
tons to 650,000 tons. The decrease in unleaded gas prices and
the stronger US Dollar is also pressuring prices.
10/6/08 Sugar futures prices are selling off with the rest of
the softs. Sugar prices are below 12 cents and the fear of a
global recession, flight to liquidity and the strong US Dollar
are hurting prices. Sugar option premiums are high.
9/26/08 Sugar futures prices are range bound this week in spite
of the Brazilian Sugarcane Industry Association estimate that
sugarcane production is down 4% from a year ago and 59% of that
is being used to produce ethanol. Sugar option premiums are
high.
9/19/08 Sugar futures prices sold off with the rest of the softs
this week as a rush to liquidity hit the commodity markets.
Sugar option premiums are high.
9/12/08 Sugar futures prices sold off again this week following
crude oil down. The USDA estimates that global supply will fall
behind consumption by 3.5 million tons in 2008-09. Sugar option
premiums are high.
8/29/08 Sugar futures prices are trying to rally this week based
on the potential damage that may occur in Cuba if Hurricane
Gustav hits the sugar plantations with high winds. Also helping
prices is the run in gasoline prices. Sugar option premiums are
high.
8/22/08 Sugar futures prices rallied this week based on the
correction in the US Dollar and the huge run in the price of
unleaded gas and crude oil futures. Sugar option premiums are
high.
8/15/08 Sugar futures prices are selling off based on the USDA
report showing a build in ending stocks from 607,000 to 767,000
short tons. The sugar market is having problems rallying because
of the extreme weakness in energy/gasoline prices. Sugar option
premium are high.
8/8/08 Sugar futures prices have rallied 4 cents since June
based on India's sugar production dropping by 6% from last year
and estimates that it may fall by 25% because farmers are
planting more profitable crops. Sugar option premiums are high.
7/25/08 Sugar futures prices sold off again following unleaded
gas futures prices precipitous drop. The strength in the US
Dollar also helped the decline. Sugar option premiums are above
average.
7/18/08 Sugar futures prices sold off in the wake of the broad
based commodity sell off led by crude oil. Sugar futures prices
fell by over 150 ticks this week. Sugar option premiums are
high.
7/11/08 Sugar futures prices are still rallying this week based
on the USDA estimates of the world ending stocks falling from
1,273,000 to 607,000 tons because of the strong demand for
ethanol. Sugar option premiums are high.
7/4/08 Sugar futures prices rallied again this week led by the
high prices for corn and unleaded gas and the overall strength
in the commodity markets. The Brazilian use of sugar for ethanol
at the expense of food is pushing prices. Sugar option premiums
are high again.
6/27/08 Sugar futures prices rallied this week above 13 cents
based on fund buying and the weakening US Dollar. Sugar option
premiums are average.
6/20/08 Sugar futures prices are rallying
again this week based on massive fund buying and record unleaded
gas and corn prices. Sugar option premiums are average.
6/13/08 Sugar futures prices rallied almost
a penny this week as The USDA supply and demand report reduced
its estimate of US ending stocks from 1.336 to 1.273 million
tons. Sugar option premiums are average.
6/6/08 Sugar futures prices rallied this
week based on the strength in the energy markets, the falling US
Dollar and the central-south Brazil sugar cane crush being down
9% because of wet conditions. Sugar option premiums are average.
5/30/08 Sugar future prices are still
selling off but may be near a major bottom as commercial
interest are mounting. Sugar option premiums are average.
5/23/08 Sugar futures prices are selling off
again to a yearly low. There is no bullish news in the sugar
market and the trend is your friend until some comes around.
Sugar option premiums are average.
5/15/08 Sugar futures prices are trading
sideways. The International Sugar Organization estimates that
the world produced a 8 million ton surplus in 2007-08 which is
down from 9.3 million tons. Expectations for 2008-09 is for a
small deficit. Sugar option premiums are average.
5/9/08 Sugar futures prices rallied this
week based on record high gasoline prices and a weakening US
Dollar. The USDA supply and demand report showed US ending
stocks at 1.336 million tons down from 1.757 million tons in
2007-08. Sugar option premiums are about average.
5/1/08 Sugar futures prices are selling off
again this week based on a lack of news being considered bearish
and Brazil's expectation of a larger crop than originally
expected. Sugar option premiums are average.
4/25/08 Sugar futures prices are selling off
this week based on a lack of any bullish news and the decline in
unleaded gas prices from its high. There is a relationship
between gas prices and unleaded gas because the sugar in Brazil
is used to make ethanol. Sugar option premiums are above
average.
4/18/08 Sugar futures prices have been
rallying this week based on fund buying and the new record high
for unleaded gas. Brazil is predicting that 58% of its sugar
crop will be turned into ethanol. Sugar option premiums are
above average.
4/11/08 Sugar futures prices have been
rallying this week following unleaded gas prices and an overall
strength that is returning to the commodity markets. The massive
sell off during St. Patrick's Day through March 21st was based
on panic and a need for liquidity and not supply and demand. The
USDA reduced ending stocks of sugar from 1.978 million tons to
195. Sugar options premiums are becoming fair again.
4/4/08 Sugar futures prices have been a yawn
recently as prices are drifting sideways. Sugar did rise
slightly this week in the wake of the strong unleaded gas price
move. This relationship based on ethanol had been more
correlated until recently. Sugar option premiums are average now
based on the lack of volatility in sugar futures prices.
3/28/08 Sugar futures prices have been
languishing this week without any new fundamental news to
attract buyers. High unleaded gas prices have been supportive
and sugar option premiums are above average.
3/21/08 Sugar futures prices kept falling
this week as Wall Street hedge funds and commodity funds
liquidated futures positions to cover margin calls in stocks and
to pay back borrowed money. The Bear Stearns issue took the
confidence from investors. The Fed's 75 basis point cut
surprised investors because a full 100 basis point cut was
expected. Sugar option premiums are high.
3/14/08 Sugar futures prices bounced back
after the correction. The new lows for the US Dollar and
Brazilian ethanol production have affected prices. The US ending
stocks went from 2.029 million tons to 1.978 according to the
USDA's estimates. Sugar future prices are still way off from the
all time highs around 66 cents. Sugar option premiums are high.
3/7/08 Sugar futures prices sold off 2 cents
this week leading the massive fund liquidation in the softs
sector. China is expecting sugar deficit because of poor growing
conditions this year. Sugar option premiums are high.
2/29/08 Sugar futures prices rallied to
contract highs this week based on inflationary fears and all
time high unleaded gas prices. The potential 50 basis point
interest rate cut at next month's FOMC meeting pressures the
dollar which also helped buoy prices. Sugar option premiums are
high.
2/22/08 Sugar futures prices followed crude
oil and unleaded gas up this week to new contract highs. Some
private firm estimates say that the global sugar surplus is
dwindling rapidly because of ethanol demand and a growing world
population. Sugar option premiums are still fair.
2/15/08 Sugar futures prices made a contract
high this week in spite of India's recovery rates being higher
offsetting some of their reduced harvest output. There was also
major fund buying in the May and July sugar futures contracts.
The global push to use bio fuels is helping use up the surpluses
of sugar around the globe. Crude oil and unleaded gas futures
rallied this week lending support to sugar prices. Sugar option
premiums are expanding but still relatively fair.
2/8/08 Sugar futures prices broke out to the
upside based on higher gasoline prices and an explosion in a
sugar refinery in Georgia. Higher consumption by India and China
are expected by some analysts to create a deficit in sugar
supplies soon. Sugar futures prices are near 13 cents. Sugar
option premiums are expanding quickly.
2/1/08 Sugar futures prices are
consolidating sideways around 12 cents. Brazil is the world's
largest exporter of sugar and they are producing ethanol with
the sugar because of its higher profit margin. This means that
there is less sugar to export as a food. Many countries are
converting sugar cane fields into wheat fields because of the
record wheat prices. Sugar option premiums are above average.
-T & K Futures and Options Inc.
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