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A look at Sugar Futures

Sugar Futures are an ideal way to invest in sugar over the short, medium or long term.

Sugar is a white crystalline carbohydrate used as a sweetener and a preservative. One of it's most common uses in many parts of the world is the use in a cup of tea. There are many different types of sugar including Fructose (Fruit Sugar), Sucrose (table sugar), brown sugar, Lactose (Milk Sugar), dextrose, glucose, honey, corn syrup, maltose and many more.

Sugar Chart

As you can see from the chart above, Sugar Prices have been in a range between 5 and 20 for well over a decade, with no obvious trend over this period.

NYBOT Sugar #11 are by far the most commonly traded Sugar Contract. Each contract represent 112,000lbs of sugar. Prices are quoted in cents per lb. The nominal value of a contract in dollars will be the current price in cents multiplied by 112,000, then divided by 100. For example if the current price of sugar was 12, the nominal value of a contract would be (12*112,000)/100=$13,440.

Whilst Sugar Trading can be rewarding, the risks are high as initial margin requirements are around $1,000 and just $750 for maintenance. Big price movements can quickly require additional funds to keep the position open, so it is essential to be fully aware of the risks.

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