DEFINITION of 'Sugar No.11'
A futures contract for the physical delivery of raw cane sugar. The Sugar No.11 contract includes shipping costs to the purchaser's ship at a port inside the country selling the sugar, a type of shipping called free on board. One Sugar No.11 contract represents 112,000 pounds of raw cane sugar.
BREAKING DOWN 'Sugar No.11'
This contract is considered the benchmark for trading raw sugar around the world. The quality that is acceptable for delivery is raw centrifugal cane sugar based on 96 degrees average polarization. This just means the sugar has been processed through a centrifuge in a certain way.