The price of sugar jumped on Tuesday, while other soft commodities fell in the day’s trading. Pakistan may be forced to import raw sugar, the nation’s industries ministry said, rather than buying expensive white sugar.
Pakistan has been devastated by lethal, destructive floods which have killed over 2,000 people, displaced 20 million people and flooded more than a million acres. Famine and cholera are widely feared, and essential crops have been lost.
Among those crops is sugar, which Pakistan typically exports. Raw No. 11 sugar futures rose 2.32 percent to 19.38 cents per pound.
Coffee futures lost ground as Brazilian crops arrived in the U.S., increasing supply. “Tremendous amounts of newly harvested coffee crop from Brazil should start to hit American shores any day now,” Spencer Patton, the founder and chief investment officer of Steel Vine Investments, told Bloomberg News. “That will certainly keep a lid on prices.”
Cocoa futures dropped on the Liffe, falling 1.26 percent to £2,077 per metric ton, but rose by 0.3 percent to $2,898 per metric ton in New York.
Cotton declined 0.19 percent to 83.86 cents per pound.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
