Latin American countries dominate the sugar trade; Brazil is the largest sugar producer in the world. In 2009, the top ten sugar producers accounted for 74 percent of global production.
| Country | Sugar Production (Millions of Tons) |
|---|---|
| Brazil | 36 |
| E.U. | 18 |
| India | 17 |
| China | 13 |
| Thailand | 8 |
| United States | 7 |
| South Africa | 6 |
| Mexico | 5 |
| Australia | 4.5 |
| Russia | 4 |
Source: United States Department of Agriculture
If you’re interested in investing in sugar, the ICE offers two futures contracts that track the price of sugar: Sugar #11 (world production) and sugar #14 (U.S. production). Consider the contract specs for these two sugar contracts:
Sugar #11 (World)
Contract ticker symbol: SB
Contract size: 112,000 pounds
Underlying commodity: Global sugar
Price fluctuation: $0.01 per pound ($11.20 per contract)
Trading months: March, May, July, and October
Sugar #14 (USA)
Contract ticker symbol: SE
Contract size: 112,000 pounds
Underlying commodity: Domestic (U.S.) sugar
Price fluctuation: $0.01 per pound ($11.20 per contract)
Trading months: January, March, May, July, September, and November
On a historical basis, sugar #14 produced in the United States tends to be more expensive than sugar #11. However, sugar #11 accounts for most of the volume in the ICE sugar market.
