Katie joins Pete early today to discuss sugar futures. Pete starts off discussing the Sugar Contract that he typically watches, Sugar No. 11 (/SB). This sugar contract is the global benchmark, representing unrefined sugar.
Pete teaches Katie some of the fundamentals of the sugar contract as well as the global sugar situation. He goes on to explain the contract specs of /SB, noting that it is 112,000 pounds per contract, and trades from 2:30amCT – 12pmCT.
They take a quick look at the refined sugar contract, which is not tradable for most traders, but is worth looking at due to the relationship between unrefined and refined sugar.
Pete goes on to explain that because ethanol is a possible sugar product, as well as being a corn product, there is a strong relationship between ethanol, corn, sugar and gasoline.
They wrap up the segment looking at sugar as it relates to the dollar and the US inflation rate.