I start long positions in sugar Nr.11. As a contrarian I'm ready to buy more contracts if we should reach levels under 9 which is absolutely possible. This will be a swing trade, time horizon will be 3- 6 months.
Yes been looking at sugar as well, there are no retail lemmings or pikers on board Sugar #11 yet, and open interest, volume are quite low. Sentiment is just right, is in perfect territory,just a waiting game now....., just to wait.....
I feel that if #11 bounces, it's going to come quick and violent... and probably some news how more resources will be spent on sugar ethanol vs corn. Can someone weigh in on the reason why more sugar is not used for ethanol, since it's cheaper and more energy efficient than ethanol from corn? It just doesn't make sense to me that corn, which has so many other uses for food/feed, must be also used as fuel when there is so much cheap sugar... Also interesting that london white keeps creeping higher, under the radar..
I completely agree, just a waiting game at the moment.. If we can get a move up like 2005 theres some good money to be made.
Maybe today is the day for a bottom in sugar.. they're pounding it pretty good now down to 875 already.
It's simple. The US doesn't grow sugar, and it does grow corn. Hence, a $.54/gallon tariff on sugar-based ethanol. Just search google for "sugar ethanol tariff" and see the rants.
Very true, and the tariff applies not only to sugar based ethanol, but to sugar in general, hence the existence of the dual contracts (#11 world, and #14 domestic) on the NYBOT. The US sugar price has been a multiple of that of the world price for years due to lobbying by the corn producing states and the subsequent imposition of hefty tariffs on the importation of sugar (we are the only country that uses corn syrup instead of granulated sugar to produce cola and to sweeten many other food products) and this ethanol issue is more or less just an extension of that in my opinion. If we had a larger domestic sugar crop you can bet things would be different...
You can say that again, the flipside is the US does use an absurd quantity of base sugar products globally, corn or otherwise. Despite the fact, the international economy was built on sugar, and that it's likely the most used commodity out there, sugar contracts have been so weak historically. But, sugar, WITHOUT cocoa fat, coffee, wheat or corn, could well be sitting in the dustbin of history. Just something to think about.