sugar-nybot vs nymex

Discussion in 'Commodity Futures' started by battle river, Sep 30, 2007.

  1. any reason why there is a price discrepancy between sugar on nybot and nymex?
    eg. nybot(ice) is showing a ask that is sometimes 4-5 ticks higher than the nymex bid? its only usually a few contracts so myabe no one cares but i find it odd. i don't trade sugar but i added it to the screen last week and thought it wierd.
  2. As you can see from my online name, I'm new to futures trading but just as an FYI. I bought MAR NYBOT #11. (Seasonality position BTW)

    NYBOT was advised to me as the exchange to "trade sugar" I'd be curious to read the responses to your question because you raise an interesting point.

    Good trading,
  3. Sugar has been trading on the Coffee and Sugar Exchange, now NYBOT, for eons and like with any physical commodity the exchange provides services to the industry besides trading the contract.

    They are involved in aspects of education, grading, inspecting, warehousing and administering deliveries - which in the case of Sugar can be from any part of the world. So the exchange is an integral part of the world sugar business and culture with off floor membership list matching the who-is-who of the world sugar biz executives.

    The NYMEX listing of the original NYBOT contracts without developing similar extensive infrastructure is some kind of a joke and the BS bids and offers speak for that.

    If one of the NYNEX sugar bids was hit they would arb it off at NYBOT. :D


  4. after watching for a bit,its not even worth the effort.the one day had some decent bids but usually it's useless.its like trading a penny stock where there is no one on the other side.:D