1. Introduction to Commodities
  2. Commodities: Cocoa
  3. Commodities: Coffee
  4. Commodities: Copper
  5. Commodities: Corn
  6. Commodities: Cotton
  7. Commodities: Crude Oil
  8. Commodities: Feeder Cattle
  9. Commodities: Gold
  10. Commodities: Heating Oil
  11. Commodities: Live Cattle
  12. Commodities: Lumber
  13. Commodities: Natural Gas
  14. Commodities: Oats
  15. Commodities: Orange Juice
  16. Commodities: Platinum
  17. Commodities: Rough Rice
  18. Commodities: Silver
  19. Commodities: Soybeans and Soybean Oil
  20. Commodities: Sugar
  21. Commodities: Wheat
  22. Understanding Commodities Trading

Sugar is a crystalline of carbohydrates that has been a natural ingredient in our diets for thousands of years. At one point, the refined table sugar we consider a staple was so rare and expensive it was called “white gold.” Today, sugar is the most popular ingredient added to foods in the U.S. The average American consumes more than 150 pounds of sugar per year.

Contract Specifications

Ticker Symbol

YO (CME Globex)

SB (ICE)

Contract Size

112,000 pounds

Contract Months

H, K, N, V

Trading Hours

CME Globex: Sunday – Friday, 6:00 p.m. – 5:00 p.m. (there’s an hour break from 5:00 to 6:00 p.m. each day)

ICE: Monday – Friday, 3:30 a.m. – 1:00 p.m.

Last Trading Day

CME Globex: The day immediately preceding the first notice day of the corresponding trading month of Sugar No. 11 futures at ICE Futures U.S.

ICE: The last business day of the month preceding the delivery month

Price Quote

U.S. Dollars per pound

Tick Size

$0.0001 per pound ($11.20 per contract)

Production        

About 80% of the world’s sugar comes from sugarcane, a perennial grass that is grown in tropical and subtropical areas. The other 20% comes from sugar beets, grown mostly in the temperate zones of the Northern Hemisphere. Worldwide, 70 countries produce sugar from sugarcane, 40 from sugar beets and 10 from both. The top producers are Brazil, India, China, Thailand and Pakistan.

Price Drivers

Despite health concerns and increasing obesity, there is strong demand for sugar throughout the world. Factors that influence sugar prices include:

  • global sugar stocks (inventories)
  • global consumption outlook
  • inflation (sugar tends to be correlated to the U.S. inflation rate)
  • weather conditions and weather outlooks
  • governmental regulations

 


Commodities: Wheat
Related Articles
  1. Investing

    Top 4 Sugar Stocks of 2017

    In 2016, sugar ended a five year bear market and prices rose steadily. Where do they go from here?
  2. Trading

    This Chart Suggests Now Is the Time to Buy Sugar (SGG, CZZ)

    The break above the resistance of an ascending triangle suggests that prices of the assets mentioned in this article could be headed higher.
  3. Investing

    $150B Sugar Industry on Verge of 'Tipping Point'

    Price shocks aside, Bloomberg sees dark clouds ahead for the beaten down sugar industry.
  4. Investing

    Coca-Cola & PepsiCo: New Challenges in India (KO)

    India has the potential to be the largest growth market in the world over the next decade. Coca-Cola and PepsiCo want to maximize that potential.
  5. Insights

    Nestlé Says It Will Satisfy Your Sweet Tooth With Less Sugar (NSRGY)

    Managing the balance between what "tastes good" and what is considered "good for you" is one of the biggest challenges for packaged food companies.
  6. Investing

    Agriculture Commodities Are In The Bear's Sights

    Agriculture stocks have experienced strong moves higher over recent weeks, but chart patterns on sugar, corn and wheat are suggesting the moves could be short lived.
  7. Trading

    Sugar and Cotton ETF Trade Setups (SGG, BAL)

    Sugar and cotton ETFs are setting up for another move to the upside amidst a longer-term uptrend.
  8. Trading

    Now Is the Time to Buy Sugar and Coffee (JO, SGG)

    Most traders are currently focused on hard commodities such as gold and oil. However, bullish price action in coffee and futures suggest now is the time to invest in soft commodities.
  9. Investing

    Trading The Soft Commodity Markets

    Learn the contract specifications for a few of the most heavily traded commodities.
  10. Trading

    These ETFs Tend to Do Well in June

    These ETFs have moved higher in June at least 82% of the time.
Frequently Asked Questions
  1. What is the difference between an inter vivos trust and a testamentary trust?

    The difference between inter vivos trusts and testamentary trusts.
  2. Who are Target's (TGT) main competitors?

    Learn more about the discount retailer Target and its competitors. Find out some of the things discount retailers do to increase ...
  3. Why would a company issue preference shares instead of common shares?

    Learn about some reasons corporations might issue preference shares and why investors might value them more than common shares.
  4. What are the Advantages of Ordinary Shares?

    Dividends and ownership rights are two advantages of investing in ordinary shares.
Trading Center