According to the Australia and New Zealand Banking Group, the globe's second-largest consumer of sugar might purchase 2.7 million metric tons in the year beginning October 1, which would be up from approximately 2 million metric tons. The world's top consumer of sugar is India.
"All the evidence points to the fact that there is no stock of sugar left in China," agricultural economist Paul Deane told the news service on Monday.
At 1:54 on Tuesday, sugar futures climbed 3.72 percent, a 0.78 cent rise to 21.74 cents per pound.
China's production of sugar is likely to be about 12.5 million tons beginning October 1 while demand for the soft commodity will be about 15 million tons.
Deane said the average for sugar futures might run as high a 26 cents per pound during the first quarter of 2012, also because supplies of the commodity from Brazil and Thailand are tapering. For the remainder of the year, the average price will range from 22 to 23 cents per pound.
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.