Sugar Commodity Price

Sugar No. 11 Futures End of Day Settlement Price




Sugar Commodity News

Latest Global Financial News Impacting Sugar Prices

Unique News Catalysts:

 

Australia; Brazil; Canada; China; Colombia; Costa Rica; El Salvador; European Union; Honduras; Indonesia; Japan; Panama; Russian Federation; Thailand; United State vs India's Sugar Subsidies: Any change in WTO trade dispute status supports the global price of sugar. This news catalyst increases the possibility of removal of India sugar subsidies. If removed, India sugar stockpiles could fall thus decreasing global supply.

  • 10/16/19 - On 16 October 2019, Guatemala requested the Director-General to compose the panel. On 28 October 2019, the Director-General composed the panel.

Brazil vs China's Sugar Tariffs:

Ethanol Demand:

India Supply Curb:




Sugar Commodity Correlations

Asset Correlations That Move With The Price of Sugar

Unique Correlations:

 

Sugar and Brazil Relationship: Since Brazil is the leading producer of sugarcane in the world, the value of the Brazilian Real plays a significant role in the price of sugar futures. A weaker real is bearish for sugar since it encourages export selling by Brazil's sugar producers.

  • 4/26/20 - Small divergence between Brazil stock market & sugar correlation. However, any rise in Brazilian equities / currency will help support the price of sugar.

Daily Chart: SGG vs BRZU

Brazil real correlation to Sugar futures: SGG vs BRZU

Weekly Chart: SGG vs BRZU

Brazil stock market correlation to Sugar

 

Sugar and India Relationship: Since India is the second leading producer of sugarcane in the world, yielding approximately 33 million metric tons of sugar in 2018/2019 season. The value of the Indian Rupee now plays a role in the price of sugar futures. Weakness in the Indian Rupee against the US Dollar encourages India's sugar producers to boost exports.

  • 4/26/20 - Large divergence between India stock market & sugar correlation—suggesting a rise in sugar prices over a collapse in Indian equities/currency for mean reversion.

Daily Chart: SGG vs INDL

India stock market correlation to Sugar futures: SGG vs INDL

Weekly Chart: SGG vs INDL

India rupee correlation to Sugar futures: SGG vs INDL

 

Sugar and Crude Oil/Gasoline Relationship: One of the key features of the sugar market is
its strong linkage with energy markets, mainly because sugar crops can also be processed into ethanol. Higher crude oil prices benefit ethanol prices and may prompt Brazil's sugar mills to divert more cane crushing toward ethanol production rather than sugar production.

  • 04/26/20 - Small divergence between crude oil / gasoline and sugar correlation. However, any rise in Crude Oil and Gasoline will help support the price of sugar.

Daily Chart: SGG vs USO

oil & gas market correlation to Sugar futures: SGG vs USO

Weekly Chart: SGG vs USO

gasoline market correlation to Sugar futures: SGG vs USO

 

Sugar and Silver Relationship: Long-term Commodity Correlation

  • 4/26/20 - Large divergence between silver & sugar correlation—suggesting a rise in sugar prices and pullback in silver prices for mean reversion.

Daily Chart: SGG vs SLV

ilver correlation to Sugar futures: SGG vs SLV

Weekly Chart: SGG vs SLV

SLV etf correlation to sugarcane: CANE vs SLV




Sugar Commodity ETF

Get Involved With Sugar Movement Using CANE and SGG stock