Discussion in 'Commodity Futures' started by criveratrading, Mar 4, 2006.
anyone in here trading sugar?
pork bellies, frz oj, why are you asking, is sugar ready to move??
Sugar has been moving for like 2 years...I would say It still goes higher.... "ethanol" anyone!!
IPSU--nice sugar stock
Are you aware of actual demand for sugar in industrial ethanol production?
My understanding is that it is far cheaper to produce ethanol from natural gas. Surely it would take a very severe shortage of gas to make ethanol production from sugar more economic?
Brazil is now diverting a large portion of their sugar production to be used domestically for ethanol. Sugar prices will eventually top 70 cents
Myabe too late for the intemediate trend since sugar went parabolic from 10 to 18 recently. But I agree wth you on long term prospects. However, there are a lot of alternative fuels sources like corn sawgrass,etc .
I think its Methanol, that is cheaper to produce from Natural Gas, but the downside is that it releases formeldehyde when combusted, therefore the push to use ethanol, which is a little cleaner and can be made from plant biomass.
Both are used as fuel additives already.
these things come down as fast as they go up; I would not invest money at or near da top, have to catch the trend in da makin', too risky otherwise imo.
I also note that there is substantial interest and research in producing hydrogen from ethanol, and for using ethanol in fuel cells directly.
It would seem that if the principles of the Kyoto protocol proceed in any form around the world, the use of approximately net-zero carbon credit fuels such as those deriving from sugar, must surely increase dramatically.
I am a global investor.... So to me when I answered it was a no brainer that the ethanol use for sugar was solely directed at the fact that imports from a major sugar supplier(Brazil) has dropped dramatically..Hence making global supply decrease and cause the price to increase...I should be more specific, but if you are really trading commodity futures my comment should of been understood quite easily...
This is why I suggested IPSU as a way to play domestic Sugar(You are way late to the party on this sugar producing US equity, but the sky is the limit if the US really goes to an ethanol derived from sugar......Since there is one less step in the process of ethanol from sugar than from corn and sawgrass....More cost efficient)
QTWW--interesting hydrogen engine play as well