T & K Futures and Options Predicts Multi-Decade Sugar Futures Prices

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Record ethanol production, Asian demand and high oil futures prices may push sugar futures prices to multi-decade highs.

Record ethanol production, Asian demand and high oil futures prices may push sugar futures prices to multi-decade highs.

Brazil is the world's largest producer and exporter of sugar. Almost half of Brazil's sugar production was used to produce ethanol in 2007 and that percentage is expected to increase in 2008. It is more profitable for Brazil to turn sugar into ethanol than it is to sell sugar as a food. This use of sugar for fuel instead of food may reduce sugar supplies and push sugar futures prices near 20 cents per pound. High oil prices may soon make ethanol a more affordable alternative for consumers. Visit http://www.tkfutures.com/sugar.htm to learn more.

Many sugar producing countries focused on increasing profits are replacing sugar cane and sugar beet acreage with higher paying wheat and oil seed crops. This shift in planted acreage may help push sugar futures prices higher. India and China are the number one and number three largest consumers of sugar and Chinese demand is expected to increase. This increase in demand from the most populous country in the world may push sugar futures prices above the recent highs. Visit http://www.tkfutures.com/education.htm to learn more.

The author of this article is a 14 year veteran of the sugar futures markets and the president of T & K Futures and Options Inc. Before considering sugar futures or options as an investment vehicle, one must understand that there is significant risk of loss in sugar futures and sugar options trading. Use only risk capital for high risk investments like sugar futures and options. Past performance is not indicative of future results.

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MICHAEL SMITH
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