Sugar prices have been going up steadily right from the beginning of 2009. Moreover, the news of increased demand from Pakistan and Iran boosted the prices of sugar in the last few sessions.
Fundamentally, as it is perceived now, there is indeed a shortage of sugar however, as prices continue to rise, farmers are likely to start planting more sugar in 2010/11 to seek higher returns which will eventually result in a bigger harvest and lower prices.
Sugar is currently at a 29 year high and it could still have legs as we enter into unchartered territory. However, we do not expect prices to go above 32 cents/lb.
FCI would like to bring to your attention that there are substantial risks involved in trading futures and options on futures. The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The volatile nature of the futures and high degree of leverage used in commodities may result in clients losing more than their original investment. Please consider carefully whether futures or options are appropriate to your financial situation.
Sugar Markets
Wednesday, January 20th, 2010By Gaurav Gupta of FCI
Sugar prices have been going up steadily right from the beginning of 2009. Moreover, the news of increased demand from Pakistan and Iran boosted the prices of sugar in the last few sessions.
Fundamentally, as it is perceived now, there is indeed a shortage of sugar however, as prices continue to rise, farmers are likely to start planting more sugar in 2010/11 to seek higher returns which will eventually result in a bigger harvest and lower prices.
Sugar is currently at a 29 year high and it could still have legs as we enter into unchartered territory. However, we do not expect prices to go above 32 cents/lb.
FCI would like to bring to your attention that there are substantial risks involved in trading futures and options on futures. The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The volatile nature of the futures and high degree of leverage used in commodities may result in clients losing more than their original investment. Please consider carefully whether futures or options are appropriate to your financial situation.
Tags: FCI Trades, Gaurav Gupta, Sugar
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