Monthly Sugar Prices: February

Raw sugar prices slowly trended up in February,  sugar started the month at  $0.23 a pound, and sugar prices closed the month at $0.25 a pound. The upward trend was gradual, there was really only one significant blip, which occurred in the third-week of the month in concert with climbing crude.  Higher crude oil prices can spike demand for sugar  as sugar cane can be used in the  production of ethanol. A few interesting data points were released about sugar this month, but none of them had a huge influence on prices. At the beginning of the month, the NYSE Liffe released data that showed Money managers more than doubled their net-long positions, or bets on higher prices, on white sugar futures and options. Net-long positions totaled 9,034 futures and options as of Feb. 7, up from 4,128 contracts a week earlier.  At the end of the month,  F.O. Licht  announced that raw sugar may slump to less than 20 cents a pound by year-end as global supply exceeds demand for a second season in 2012-2013. On interesting thing to note about the sugar market, this month, is the level of contango, or the premium paid to purchase sugar in a future month compared to current month.  This premium, when comparing immediate delivery to to March delivery was nearly 28%.

Powered by WishList Member - Membership Software