Raw Sugar Futures, NYSE Euronext Liffe
One way of gaining exposure to raw sugar is through trading the raw sugar futures contract on Euronext Liffe in London.
As a commodity trader you can use the LIFFE CONNECT trading platform to follow the price action in this interesting soft commodity.
With the recent concerns over global food prices and the long term trend growth in demand for sugar, particularly from fast growing BRIC economies, these are exciting times for trading raw sugar futures.
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This futures contract is for physical delivery of raw sugar and each contract unit is 112,000 lbs. or 50 long tons.
Delivery months for the contract are March, May, July and October which means that you would be able to trade for up to 8 delivery months.
Terms of delivery are for the raw sugar to be delivered from any port in the country of origin or in the case of a landlocked country, the nearest port.
Originating countries for this commodity include: Argentina, Australia, Belize, Barbados, Columbia, Brazil, Costa Rica, El Salvador, Ecuador, Guatemala, Honduras, Jamaica, Malawi, Mexico, Nicaragua, Mozambique, Peru, South Africa, Thailand, Trinidad, Thailand and the USA.
The price in US cents per lb. is based on delivery in bulk by a vessel from a port of export from the above mentioned countries, or a port of an adjacent country if the originating country is landlocked.
Quality of the raw cane sugar has to be at around 96 degrees polarisation or above, and sugar which is less than 95 degrees polarisation is not deliverable.
The raw sugar cane which is over 96 degrees will be delivered either at a discount or a premium.
Minimum price movements are in ticks of 0.01 cents per lb. or $11.20 per contract. Trading hours are 09h45 to 1730. Trading on Euronext.liffe is just one way of gaining exposure and potential profits from this commodity.
It is also possible to trade sugar futures on the ICE Futures US platform where there are two contracts available, ICE #11 sugar futures and ICE #16 raw sugar futures.
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