11 Sugar vs 14 Sugar

Discussion in 'Commodity Futures' started by qll, Jan 30, 2007.

  1. qll

    qll

    Anyone knows the difference between 11 and 14?
    11's chart is down and 14 is up mostly recently.

    In my market, I only have one sugar, so I don't know if I could compare it with 11 or 14.
     
  2. Sugar #11 is sometimes called "international sugar", Sugar #14 is called "domestic sugar", and Sugar #5 is refined beet sugar (aka "white").

    Sugar #14 specifically calls for sugar delivered at ports in the US.

    Sugar #11 is freely traded, sugar #14 is subject to a wide variety of American trade restrictions, price support structures, etc.

    Before jumping into the spread, you'd have to understand what the governmental maneuvering is to know why there's a spread between #11 and #14.

    #11 versus #5 might be an interesting spread (the latter trading at LIFFE), both are free from US trade controls.