Trading Sugar

One of our readers asked about strategies in trading sugar futures.  One of our commodity experts, John Turner, weighs in...

sugarSugar can be a very interesting and historical market. During the inflation of the 70's and other periods, sugar was one of the first commodities to make a large move.

The canary in the mine so to speak. Each time period can be different, and weather and people's diets do change dramatically.

But as one of the staple commodities its current price, and relatively low cost offer an opportunity for investor/traders who can look out to 2016 anticipating stronger demand and the possibility of El Nino damaging or reducing production.

Using options, and limited futures covered by short calls going out to July of next year might be a valuable speculation.

Good trading John Turner

 

John is a Senior Broker at Sierra Mesa Trading and has been working with clients in the field of financial products for over 25 years. John can be reached at LinkedIn