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Sugar Plunges 2% amid Widespread Commodity Selloff

December 7, 2017 at 17:40 by Andrew Moran

Sugar futures have plummeted as much as 2% towards the end of the trading week. Sugar has been just like most commodities over the last several trading sessions as investors initiate a commodity selloff.

March sugar futures tumbled $0.0023, or 1.59%, to 14.22 cents per pound at 16:23 GMT on Thursday on the US ICE Futures exchange. The white commodity has been trading under 15 cents since the end of November, and has cratered close to 25% year-to-date.

Traders have been engaging in a massive selloff of commodities. Analysts say that all of the major commodities have been on the defensive for the entire month. The Fox Business Network (FBN) reports that the Goldman Sachs Commodity index slipped below a crucial support level, which triggered selling in most commodities, including sugar futures.

Investors pay close attention to sugar because it is closely associated with energy markets. Sugarcane producers can convert their supplies into sugar or ethanol.

Sugar started off 2017 strong, climbing above 20 cents, but it crashed to as low as 12.50 cents in June. Sugar has been paring those losses, but it has been a seesaw affair for sugar investors.

Experts are already looking ahead to 2018, and it is not looking positive for sugar. According to Rabobank, a Dutch multinational banking and financial services company, the market is projecting that sugar will be the worst performing commodity next year – cotton is anticipated to be the best.

In October, the International Sugar Organization (ISO) warned that sugar production levels will be higher than demand by about 4.6 million tons.

Other commodities are deep in the red on Thursday. March coffee futures dipped $0.03, or 2.90%, to $1.232 per pound. March wheat futures fell $0.045, or 4.50%, to $4.207 per bushel. March corn futures tumbled $0.0175, or 0.50%, to $3.51 a pound. March cotton futures jumped $0.003, or 0.41%, to 73.02 cents a pound.

If you have any questions and comments on the commodities today, use the form below to reply.

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