India's policies on sugar export limits have become a key driver of the raw and refined sugar futures markets. The price of the sweetener rose today after a junior farm minister, K.V. Thomas, told the press that the country needs to ensure that domestic supplies of sugar remain adequate.
Sugar prices also took a major hit last week after ICE Futures raised the margin it required traders to hold on contracts by 81 percent, a move which forced a lot of traders out of their positions.
"The most important thing is what India's going to do," James Kirkup, the head of sugar broking at ABN Amro Market, told Bloomberg News. "India is the swing factor in statistics, determining whether the market is in deficit or surplus. If they decide to not license any exports, the market will go through the roof."
On the IntercontinentalExchange, raw No. 11 sugar futures for March 2011 delivery were up 3.069 percent to 27.04 cents per pound. Contracts for May delivery gained 2.37 percent to 24.47 cents per pound.
On the Liffe, refined white sugar futures gained 1.47 percent to $719.50 per metric ton.
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.