Can sugar come out of its landmark?

source: Atlasbig.com

Brazil is the world’s leading sugar cane product. Sugar beets can grow in more moderate climates.

source: Nationalaster.com

The graph highlights that Russia is leading the world in the product of sugar beets, with France and the second and third Germany.

Many countries support the production of local sugar due to the volatility of the historical prices of the soft commodity to ensure supplies, because sugar is a decisive element in many food products. While the near price of World Sugar #11 is about 16.60 cents per pound in early August 2025, the US -backed price is more than twice this level.

The graph shows that the future contracts emerged by the US government in the government were trading at 38 cents per pound in early August 2025. Many other sugar -producing countries support their local production.

Brazil is the leading country in the world that exports sugar.

source: Worldstopexports.com

The graph highlights that Brazil exports nearly half of the sugar in the world, and about eight times the amount of Thailand in second place.

In the United States, a leading corn product and design in the world, coarse grains are the main component of ethanol production. In Brazil, sugar cane is treated in biofuels. Therefore, the price of sugar can be sensitive to the prices of oil products and raw oil. High oil prices can lead to fewer Brazilian sugar exports, as more need to produce local fuel.

The monthly NYMEX ore -oil contract has displayed the landmarking trend since the highest level in March 2022, the circulating range between $ 60 and less than 80 dollars a barrel since September 2024. The procedure in the crude oil market has not supported the rise in sugar prices over the past year, as the Brazilian production and its boxes satisfy the Brazilian.

Snow sugar futures for delivery in October 2025 is the current active month of the sweet commodity.

The daily graph for a period of three months shows that technical support at 2 July decreased at 15.44 cents, with technical resistance levels at the rise of July 18, 17.02 cents, and May 14, 2025, which is 18.46 cents per pound. On the level of 16.30, the world’s future prices are strengthened at least than the lowest level in July.

The most direct way to the risk of sugar is the very liquid global sugar market #11. Each contract of sugar future contains 112,000 pounds. In 16.30 cents per pound, value is 18,256 dollars. The original margin requirements are $ 1071 or 5.87 % of the contract value. When the shares drop to less than $ 974 per contract, the exchange of snow requires a maintenance margin. Futures are the tools to benefit from this, as the market participant can control future sugar contracts with less than 6 % in advance payment.

Teucrium Sugar Etf (Cane) provides a replacement for future contracts because it has three futures for sugar trading in ICE SUGAR, with the exception of the near contract. The formation of cane reduces fluctuation by eliminating roll risks for the near nodes. However, it also reduces the biological capabilities as the most expensive activity can occur in prices in the near decade. Therefore, Cane tends to outperform the near contract during the negative price procedures, but it was less than the near contract during the gatherings. At $ 10.90 per share, Cane had $ 13.068 million assets, trading on average 61,999 shares per day and imposing 0.22 % management fees.

The direction of the sugar falls in early August 2025. If the price of the future sugar contracts can be operated within 17 and 18.50 cents per pound, the sweet commodity may become more sweet.

On the date of publication, Andrew Hisht was not (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com