Sugar No.11
What Is Sugar No.11?
Sugar No.11 is a futures contract for the physical delivery of raw natural sweetener. The Sugar No. 11 futures contract is viewed as the benchmark for trading raw sugar around the world. Sugar production is gathered in tropical and subtropical areas, so the performance of Sugar No. 11 can likewise be utilized as an economic data point for countries that are heavy producers.
Sugar No. 11 is additionally written as Sugar #11, and Sugar No. 11 futures are some of the time alluded to by the commodity code SB.
Figuring out Sugar No.11
Investing in a Sugar No. 11 futures contract is one way for producers, processors, and examiners to trade sugar futures. A futures contract is a method of buying or selling commodities at a preset price and normalized delivery dates. Investors can sell (a short position) or buy (a long position) contingent upon their perspective on the course of the price of the commodity.
There are, of course, other sugar futures like white sugar futures and containerized white sugar futures. Sugar No. 11 is the raw product, like a barrel of crude oil. It is likewise less expensive to ship than the refined sugar products, so processors and purifiers as a rule trade Sugar No. 11, while end-clients of the refined product are the target for the other sugar contracts. Therefore, Sugar No. 11 is the contract that most plainly shows the supply and demand for sugar globally.
Kindly bear as a top priority that trading futures contracts can be very unsafe since the prices of futures can swing fiercely. Thus, the volatility or price changes of Sugar No. 11 futures means that investors could lose the entirety of their investment.
Sugar No. 11 Contract Specifications
One Sugar No.11 contract addresses 112,000 pounds of raw pure sweetener. The quality that is acceptable for delivery is raw divergent raw sweetener in view of 96 degrees average polarization. This just means the sugar has been handled through a rotator with a specific goal in mind.
The Sugar No. 11 futures contract delivery months are as per the following:
- Walk (H)
- May (K)
- July (N)
- October (V)
The Sugar No.11 contract incorporates shipping costs to the buyer's ship at a port inside the country selling the sugar, a type of shipping called free ready. The buyer is responsible for any dumping costs when physical delivery of the actuals happens. According to a trading viewpoint, the base price change on the Sugar No. 11 contract is 1/100 penny for each pound or $11.20, and there is no daily price limit.
Factors Influencing Sugar No. 11
Sugar No. 11 is clearly impacted by global consumption of raw natural sweetener and its refined cousins. This means that global inventories of sugar-raw and refined-impact the daily price of the contract. Besides, as a soft commodity that is developed as opposed to mined, regional climate and developing conditions can drive price changes in Sugar No. 11 as they will ultimately impact the crop yield.
In any case, there are a few more subtle factors that can influence Sugar No. 11. Government activities like managing sugar content or changing product naming, specific in large markets like the U.S. can make a difference. Likewise, the utilization of raw sugar in the creation of biofuels has made a fascinating connection between ethanol, corn, and Sugar No. 11, proposing that sugar may one day be viewed as to a greater extent a biofuel commodity as opposed to a food commodity.
Features
- The Sugar No. 11 futures contract is viewed as the benchmark for trading raw sugar around the world.
- Investing in a Sugar No. 11 futures contract is one way for producers, processors, and theorists to trade sugar futures.
- Sugar No.11 is a futures contract for the physical delivery of raw natural sweetener.
