How Do I Invest in Sugar? (2024)

FAQs

How Do I Invest in Sugar? ›

Sugar is often traded using futures – contracts in which you agree to exchange a set amount of the underlying commodity at a set price on a set date. These contracts are traded on futures exchanges, such as the Intercontinental Exchange (ICE).

Those seeking to invest in sugar stocks need to take a unique approach. That's because no pure sugar-producing companies trade on major U.S. stock exchanges. Instead, a couple of companies produce sugar along with other agricultural products or as part of a diversified portfolio.

Furthermore, the sugar industry is backed by strong fundamentals, with factors such as increasing demand, government support, and technological advancements driving growth. Hence, investing in sugar sector stocks can offer significant growth potential along with resilience in uncertain market conditions.

Sugar Overview

With 1 ETF traded in the U.S. markets, Sugar ETF gathers total assets under management of $32.82M. The average expense ratio is 1.14%. Sugar ETF can be found in the following asset class: Commodities.

The Balrampur Chini Mills Limited (BCML) company was established on July 14th, 1975. It is a significant integrated sugar manufacturer in India. The Company produces and sells sugar primarily. It is a renowned company in the stock market and is considered a top choice by many traders.

Interactive chart of historical daily sugar prices back to 1979. The price shown is in U.S. Dollars per pound. The current price of sugar as of May 26, 2023 is $0.2541 per pound.

Commercial sugars (granular, syrup, and honey) have an indefinite shelf life due to their resistance to microbial growth. However, sugars have a best-if-used by date of approximately 2 years for quality concerns.

Owing to low sugarcane yields and inability to absorb fixed costs sugar stocks are falling. Sugar stocks were already under pressure because of ban on sugar exports.

U.S. Sugar Corporation is a privately owned agricultural business based in Clewiston, Florida. The company farms over 230,000 acres of land in the counties of Hendry, Glades, Martin, and Palm Beach. It is the largest producer of sugarcane in the United States by volume, producing over 700,000 tonnes per year.

Where can I trade sugar? ›

The sugar commodity is traded in the International Exchange (ICE), Kansai Commodities Exchange (KEX), Brazilian Mercantile and Futures Exchange (BF&M), National Commodities and Derivatives Exchange (NCDEX), National Commodity Exchange Limited (NCEL), Zhengzou Commodity Exchange (CZCE) And the Multi Commodity Exchange ( ...

Sugar for total and food use in 2023/24 is set at 12.815 million STRV and 12.675 million respectively, both unchanged from 2022/23. The 2023/24 ending stocks are 1.444 million STRV and the stocks-to-use ratio is 11.3 percent.

11 Sugar (YO:NMX)

– Coca-Cola is the world's largest buyer of sugar and controls 25% of the global soft drink market. Its portfolio of 500 brands includes Sprite, Fanta, and Minute Maid juices.

Ranveer Singh invests in beauty company Sugar Cosmetics.

LA QUINTA, CALIF. — The consensus from market analysts speaking at the International Sweetener Colloquium is that domestic sugar prices for the 2023-24 marketing year are up, and they're likely going to stay up or move higher.

Outlook​ The USDA predicts that global sugar output will rise 1.6% in 2023 to 183 million tonnes, while Krungsri Research sees production expanding by another 2.0-3.0% annually over 2024 and 2025.

Prices have been driven up by unseasonal rainfall in India, a poor European beat crop, summer drought conditions as well as OPEC+'s oil output cuts.

Why is sugar traded? ›

Sugar trading basics

Due to its versatility, sugar has captured the attention of traders and investors all over the world. They often choose this market because of its size and volatile nature, which offers the opportunity to profit whether its price is rising or falling.

"Technically sugar never spoils," explain food safety experts from the US Department of Agriculture's Food Service and Inspection Service, though they do add, "for best quality it is recommended to use within two years of opening."

Salt and Sugar have an indefinite shelf life in a 5 gallon bucket. Preppers should be using plastic buckets because, unlike store-bought packaged goods, they are effective for long term storage.

It is because sugar stocks are considered to be cyclical in nature. The fortunes of the sugar stocks ebb and flow with sugar prices, which in turn depend on sugar production and supply. Even with demand being stable, fluctuations in production/supply cause prices to rise and fall.

The market size, measured by revenue, of the Sugar Processing industry was $13.5bn in 2022. What was the growth rate of the Sugar Processing industry in the US in 2022?

Chicago, May 11, 2023 (GLOBE NEWSWIRE) -- The industrial sugar market is projected to reach US$59.1 billion by 2028 from US$46.4 billion by 2023, at a CAGR of 5.0% during the forecast period in terms of value.

Imperial Sugar Company is the oldest extant business in Texas. Started in 1843 in Sugar Land, a place named for the product the company processes, the company's changing ownership marked its early history.

Florida is the largest cane-producing region in the United States. Most of the sugarcane is produced in organic soils along the southern and southeastern shore of Lake Okeechobee in southern Florida, where the growing season is long and winters are generally warm.

In the mid-1980s, employees became the largest shareholders in the company through an Employee Stock Ownership Plan (ESOP). Today, the company is owned primarily by its employees and charitable foundations set up by Charles Stewart Mott—The C. S.

Is there a demand for sugar? ›

Global sugar consumption was over 183 million tonnes in 2020/21¹. Consumption is driven by long-term growth of around 2% annually which is expected to continue in the future.

Florida is the largest cane-producing region in the United States. Most of the sugarcane is produced in organic soils along the southern and southeastern shore of Lake Okeechobee in Southern Florida, where the growing season is long and winters are generally warm.

Sugar: exports of major countries 2022/2023

Brazil has the highest export volume of sugar of any country, at about 28.2 million metric tons as of 2022/2023. The second largest sugar exporter, Thailand, had significantly less export volume compared to Brazil, at about 11 million metric tons of sugar that year.

The nominal world raw sugar price is projected at USD 342/t (USD 15.5 cts/lb) and at USD 425/t (USD 19.2 cts/lb) for white sugar, in 2025.

Investors can trade commodity-based futures, stocks, ETFs, or mutual funds, or they can hold physical commodities such as gold bullion. Three of the most commonly traded commodities include oil, gold, and base metals.

ASCS:USOTC US.

Description. The Sugar No. 11 contract is the world benchmark contract for raw sugar trading. The contract prices the physical delivery of raw cane sugar, free-on-board the receiver's vessel to a port within the country of origin of the sugar.

Key Takeaways. The largest sugar-producing countries are Brazil, India, Thailand, China, and the United States. Sugar is a major crop for Thailand, which has now recovered from a drought and has regained its previous levels of production. Sugar can be extracted from either sugarcane or sugar beets.

50 Years Ago, Sugar Industry Quietly Paid Scientists To Point Blame At Fat : The Two-Way Documents show that in the '60s, the sugar industry funded Harvard researchers who, examining risk factors of heart disease, dismissed concerns about sugar and doubled down on the dangers of fat.

What are the top 5 states that produce sugar? ›

Sugar cane is a grass native to Asia and grows mostly in tropical and subtropical areas. In terms of the U.S. sugar cane production by state, it is mainly concentrated in the federal states of Florida, Louisiana, Texas and Hawaii.

Yes, the sugar we use in Coca-Cola is sucrose which is sourced from cane sugar.

Global market value of sugar manufacturing 2012-2022

In 2012, the global sugar manufacturing industry was valued at over 99 billion U.S. dollars, compared to only about 56 billion U.S. dollars in 2020. The forecast value for 2022 is about 56.87 billion U.S. dollars.

Vineeta Singh is an Indian entrepreneur and CEO and co-founder of Sugar Cosmetics.

Norbert Rillieux (1806-1894) revolutionized sugar processing with the invention of the Multiple Effect Evaporator under Vacuum. Rillieux's great scientific achievement was his recognition that at reduced pressure the repeated use of latent heat would result in the production of better quality sugar at lower cost.

Sugar industry stocks in 2023

That's because no pure sugar-producing companies trade on major U.S. stock exchanges. Instead, a couple of companies produce sugar along with other agricultural products or as part of a diversified portfolio.

11 Sugar (YO:NMX)

Owing to low sugarcane yields and inability to absorb fixed costs sugar stocks are falling. Sugar stocks were already under pressure because of ban on sugar exports.

Sugar is a soft commodity produced, traded and consumed all around the world. It is a sweet-flavored ingredient, used in many types of food and drinks, that can be found in pretty much every plant, but it can only be extracted – or at least economically efficiently – from sugarcane and sugar beet.

U.S. Sugar Corporation is a privately owned agricultural business based in Clewiston, Florida.

What is sugar listed as? ›

Sugar is called by many names

Ingredients listed on the food label that end in “ose” are forms of sugar, such as fructose, sucrose, maltose and dextrose.

It is because sugar stocks are considered to be cyclical in nature. The fortunes of the sugar stocks ebb and flow with sugar prices, which in turn depend on sugar production and supply. Even with demand being stable, fluctuations in production/supply cause prices to rise and fall.

Using retail price index (RPI) data, the ONS has collected data showing the rise and fall of sugar prices since 1971. It shows how in February 2022, the average RPI of sugar was just 77p per kg, marking an year-on-year increase of over 31%.

Most U.S. sugar imports are raw cane sugar. The raw cane sugar TRQ is allocated to 40 countries based on patterns established during the relatively unrestricted free trade period of 1975-81. The Dominican Republic, Brazil, and the Philippines hold the largest shares--approximately 17, 14, and 13 percent, respectively.

Sugar futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of sugar (eg. 112000 pounds) at a predetermined price on a future delivery date.

US Sugar Futures Price is at a current level of 0.4117, up from 0.3788 last month and up from 0.3688 one year ago. This is a change of 8.68% from last month and 11.64% from one year ago.

Europeans introduced sugarcane to the New World in the 1490s. Cane plantations soon spread throughout the Caribbean and South America and made immense profits for planters and merchants. By 1750, British and French plantations produced most of the world's sugar and its byproducts, molasses and rum.