White Sugar introduction and background |
White Sugar, also known as refined sugar, is the processed form of raw sugar. It is traded globally and is used directly in consumer products and food manufacturing.
White Sugar futures are primarily traded on the ICE Futures Europe exchange in London. This contract represents refined sugar with a minimum of 99.8% polarisation, higher than raw or unrefined sugar. The price of White Sugar is closely related to that of raw sugar, but it can diverge based on refining capacity and demand for refined sugar.
Major producers of refined sugar include Brazil, India, and the European Union. The demand comes from various sectors including food and beverage manufacturing, pharmaceuticals, and direct consumer use. White sugar can be produced from both cane and beets.
Factors influencing White Sugar prices include global supply and demand for raw and refined sugar, weather conditions in major sugar-producing regions, and government policies affecting sugar production and trade. Changes in dietary trends and health concerns about sugar consumption can impact demand. The refining margin, which is the price difference between raw and white sugar, is also an important factor for traders to consider.
As with other globally traded commodities, White Sugar prices can be affected by macroeconomic factors such as currency exchange rates, particularly the value of the US dollar and the currencies of major producing countries. Energy prices also play a role, as they affect both production costs and the economics of using sugar crops for biofuel production.
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