Sugar is a vital commodity in the global agricultural and food industries. According to a report from Statista, world sugar consumption reached approximately 176 million metric tons in 2022/23. Projections indicate that this figure is expected to rise to around 180.05 million metric tons by the conclusion of 2023/2024.
The sugar industry plays a crucial role in the global agricultural and food industries. Thus, the sugar futures market is one of the most actively traded commodities.
Orient Futures Singapore offers a wide range of commodity futures exchanges. One of them is ICE’s (Intercontinental Exchange US) Sugar No.11 Futures.
Apart from ICE, Orient Futures Singapore also offers other commodity futures such as white sugar futures, soybean futures, rapeseed futures from other exchanges. This includes Dalian Commodity Exchange (DCE), Shanghai International Energy Exchange (INE), Zhengzhou Commodity Exchange (ZCE), Singapore Exchange Derivatives Trading Limited (SGX) and more.
This article aims to elaborate more on the contract specifications and current market indicators of the product under ICE Sugar Futures.
ICE Sugar Futures
ICE (Intercontinental Exchange US) is a renowned global marketplace that offers a wide range of futures contracts, including ICE sugar futures.
ICE US Sugar No. 11 Futures is a specific contract within ICE's sugar futures market that focuses on raw cane sugar. It represents the price of unrefined sugar produced from sugarcane, commonly used in food and beverage manufacturing. The contract is widely recognized as the benchmark for global sugar prices. Thus, it serves as a vital hedging and trading instrument for market participants.
Additionally, ICE also offers ICE White Sugar Futures.
ICE Sugar No.11 Futures Contract
The ICE Sugar No.11 Futures Contract has the following specifications:
The ICE Sugar No.11 Futures Contract has a minimum price fluctuation of 1/100 cent/lb., equivalent to $11.20 per contract.
The last trading day of the contract month is the last business day of the month preceding the delivery month.
Contract months are for March, May, July and October.
Trading Hours are from Monday to Friday, at these trading hours:
3:30 am – 1:00 pm (New York time)
Sugar No.11 Futures symbol: SB
ICE Sugar Futures Updates in June 2023
According to Orient Research Institute’s Weekly Updates on the Fundamental Data of Agricultural Products dated 2023065, here are the updates of ICE Sugar Futures in June 2023.
Sugar Production
Brazil's record-breaking soybean and corn exports have captured the market's attention. There has been raising concerns about potential disruptions in port logistics that could hinder sugar exports. However, Brazil managed to export 2.47 million tons of sugar in May, a year-on-year increase of 57.6%. This indicates that sugar exports have not been significantly impacted.
The number of ships waiting for loading at Brazilian ports has also decreased, indicating improved efficiency. Sugar mills in central and southern Brazil are ramping up their crushing and production due to favourable dry weather conditions.
Brazil's production and supply has seen positive developments despite concerns about port congestion affecting sugar exports.
On the other hand, major sugar-producing countries in the northern hemisphere are grappling with lower-than-anticipated production levels. This situation has resulted in a tight supply scenario in the international spot trade.
ICE Sugar Futures Price
Based on 9 June 2023, ICE raw sugars prices have dipped below 25 cents, indicating a weakening trend in the market. This can be attributed to accelerated production and improved exports from Brazil.
The ample rainfall in the previous quarter and the beginning of this year has resulted in increased sugarcane yields for Brazil's new crushing season. Sugar mills are taking advantage of the high sugar-to-ethanol price ratio by maximizing their sugar production.
During the third quarter, the prices of ICE raw sugars may exhibit a weak and volatile trend. Caution is advised, particularly in June as the July contract nears its delivery period. Market fluctuations are possible as high sugar prices impede international procurement and contracts nearing expiration may result in price increases.
Ice Sugar Futures Market Outlook
The outlook for Brazil's new crushing season is optimistic, with the peak production period expected to occur from June to September. Favourable dry weather conditions in Brazilian producing regions during June and July will facilitate rapid progress in sugar mill crushing.
Additionally, the progress of the Southwest Monsoon in India is favourable, alleviating concerns about El Niño climate conditions. The Indian Meteorological Department predicts normal levels of monsoon rainfall, providing stability to the sugar market.
Smooth port logistics in Brazil and favourable weather conditions in major sugar-producing countries will alleviate the tight supply situation in international trade flows. However, caution should be exercised as the market monitors potential fluctuations in the ICE raw sugar prices. This is particularly with the approach of the July contract's delivery period.
Monitoring the logistics situation at Brazilian ports and the weather conditions in major sugar-producing countries will be crucial for market participants in assessing the future direction of the sugar market.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG).
We provide premium customer service at an affordable cost to all our clients. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
