About White Sugar Futures
White Sugar Futures are among the most actively traded commodities on a global scale. The extensive utilization of sugar across various aspects of our lives positions it as a fundamental commodity.
Sugar holds a prominent place in numerous foods and beverages, rendering it a vital component of our dietary patterns. Its utility transcends the culinary realm, finding application in biofuel and pharmaceutical manufacturing. This further accentuating its importance.
Additionally, sugar's association with cultural traditions and its role in diverse cuisines and rituals further elevate its significance. As a result, the critical role sugar plays in diets, economies, trade, and cultural customs solidifies its standing as an essential and highly sought-after commodity in the worldwide market.
This article aims to delve into the latest updates regarding the prices and market developments of ICE White Sugar Futures as we approach the final quarter of the year.
Trading Sugar Futures on ICE
The Intercontinental Exchange (ICE) provides a range of sugar futures contracts across its different exchanges. Traders can trade ICE White Sugar Futures on ICE Futures Europe (IPE) through Orient Futures Singapore.
In addition to IPE, ICE Futures US (NYBOT) also offers a futures contract for raw sugar, known as the Sugar No.11 Futures.
Beyond sugar futures contracts, ICE extends its offerings to various other commodities futures contracts. These include ICE Futures Singapore (ICE SG)'s Mini Brent Crude Futures, Mini US Dollar Index Futures, Cotton Futures, and more. This presents traders with a diverse range of investment options.
ICE White Sugar Futures Contract Specifications
The ICE White Sugar Futures Contract has the following specifications:
The ICE White Sugar Futures Contract has a minimum price fluctuation of 10 cents per tonne ($5).
The last trading day of the contract month is the sixteen-calendar day preceding the first day of the delivery month at 17:55. If it is not a business day then the first business day that precedes immediately preceding.
Contract months are for March, May, August, October, and December.
Trading Hours are as such: 3:45 am – 1:00 pm (New York time)
ICE White Sugar Futures symbol: W
Sugar Futures News
Sugar Supply and Demand
According to Orient Futures Agricultural Products Data Weekly Report 140823, UNICA, the Sugar Cane Industry Union in Brazil, has announced the record-high sugarcane crush and sugar production in the second half of July in Brazil's central-southern region. Despite that, concerns over supply shortages for the upcoming crushing season continued to support price increases.
The weather in Brazil remained relatively dry, facilitating smooth crushing progress. Sugar production in Brazil's central-southern region increased by 11.3% YoY to 3.68 million tonnes of sugar in the second half of July, surpassing market expectations.
Weather forecasts suggest that lower precipitation in August could maintain robust sugarcane crushing and sugar production, although the influx of Brazilian sugar supply might restrain the Q3 uptrend of international sugar prices.
Furthermore, concerns about sugar production and export prospects for the next crushing season in major northern hemisphere producers like India and Thailand, under the influence of El Niño climate conditions, led the International Sugar Organization (ISO) to downgrade the global sugar surplus estimate for the 22/23 crushing season to 493,000 tons (down from the previous estimate of 850,000 tons).
ISO also projected a 2.12-million-ton deficit in global sugar production versus demand for the 23/24 season. Worries about the supply outlook for the upcoming crushing season, particularly in Asia, led to a neutral-to-bullish medium-to-long term market sentiment.
In China, the spot market faces tight supply due to low sugar factory inventories and slow terminal demand, despite the peak sugar consumption season.
The influx of Brazilian sugar might lead to oversupply concerns in the global raw sugar market, possibly restricting upward movement in China and international sugar prices. Concerns over potential contraction in future imports of sugar products have arisen due to unfavorable prospects for production and sugar exports in India and Thailand, coupled with market rumors of increased customs scrutiny.
This has limited downward space for Zhengzhou Commodity Exchange sugar futures contract (ZCE), suggesting a bullish leaning, yet volatile, long-term outlook. Weather conditions in major producing countries will remain a focal point.
Sugar Futures Price
As of August 14 2023, the White Sugar Futures Contract on ICE Futures Europe (IPE) is trading at 694.900 per ton.
According to the Orient Futures Agricultural Products Data Weekly Report dated 140823, the weakening premium of Brazilian sugar over raw sugar prices suggests potential supply pressures in the Brazilian sugar market.
However, international demand has been delayed due to high sugar prices in the first half of the year, which has resulted in low refinery inventories. Buying on dips is expected to curtail the decline in international sugar prices.
In the China market, the influx of speculative funds has driven the Zhengzhou sugar price to rise, expanding its technical upside. The pace of upward movement in Zhengzhou Commodity Exchange sugar futures contract (ZCE) is projected to be somewhat restrained, and the market could continue to experience repeated fluctuations.
In the past week, Guangxi sugar producers notably raised their spot prices by approximately 240 CNY/ton to the range of 7,290-7,340 CNY/ton, following the futures market. However, the response in spot trading was limited. These factors highlight the intricate dynamics currently at play in 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). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. 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.
