Sugar

For the week ended June 30, the near-month futures on average for both number 11 and number five sugar contracts reversed their momentum and were trending downwards week-over-week. Note that the numbers 11 and five are related to the way shipping costs are calculated for these commodities. Sugar number five is traded in London while sugar number 11 is traded in the US.

Sugar Reverses Gains for Week Ending June 30

Weekly movement

On June 30, the near-month sugar number 11 futures stood 5.2% higher at 13.7 cents from 12.8 cents on June 23. However, the weekly average for the week ended June 30 for the near-month sugar number 11 futures fell by as much as 1.8% to 13 cents from the weekly average of 13.22 cents in the week ending June 23.

Similarly, the near-month futures of sugar number five stood 2.1% higher at $403.9 per metric ton from $395.5 per metric ton on June 23. However, the average weekly near-month futures for sugar number five futures fell by as much as 1.4% to $393.7 per metric ton from the average of $399.4 per metric ton a week ago. Year-over-year, sugar number 11 futures are trading 32% lower, while the number five sugar is trading 27% lower.

Sugar Reverses Gains for Week Ending June 30

Forward curve shifts higher

In the above chart, we see that the forward curve for all the maturities for number 11 sugar has shifted to higher levels. A similar shift (not shown above) also occurred for sugar number five futures. This would mean that if companies that buy sugar (SGG) went long on sugar number 11 or sugar number five futures in the week ending June 23, they would have benefitted from those contracts.

Some companies that buy sugar include Hershey (HSY), Rocky Mountain Chocolate Factory (RMCF), Tootsie Roll Industries (TR), and Mondēlez International (MDLZ).

Next, we’ll discuss cocoa futures.

Latest articles

Today, Canopy Growth announced that it acquired the Saskatchewan-based KeyLeaf Life Sciences along with entities relating to the company and its intellectual property. Here's what you need to know about the completed deal.

Yesterday, Tyson Foods (TSN) and fellow meat producers Pilgrim’s Pride (PPC) and Sanderson Farms (SAFM) took a hit to their stocks after news came out about an investigation over price-fixing allegations.

On June 24, RH (RH) was trading at $115.01, implying a rise of 21.2% since its announcement of its first-quarter earnings results on June 12. Despite the surge in its stock price, the company is still trading at a discount of 29.1% to its 52-week high.

26 Jun

Roku Stock Fell Close to 7.0% Yesterday

WRITTEN BY Aditya Raghunath

Roku stock fell 6.8% yesterday to close trading at $93.25 per share. Roku stock has lost over 9.0% in market value in the last two trading days. Prior to this pullback, Roku stock was up a whopping 235.0% year-to-date.

26 Jun

Beyond Meat Stock Up Today on New Product Launch

WRITTEN BY Rajiv Nanjapla

Today, Beyond Meat (BYND) announced that its new product, Beyond Beef, will hit markets across the US later this week.

FedEx (FDX) ended fiscal 2019 on a dismal note and reported a significant YoY decline in fourth-quarter earnings. The delivery giant posted adjusted EPS of $5.01, which was 15.2% lower than the year-ago quarter’s earnings of $5.91. The company cited sluggish revenue growth and increased expenses as the main reason behind the dismal bottom-line performance.

172.31.71.127