Sugar ETF

Sugar is the world’s number one sweetener. But don’t forget, they also make ethanol out of sugar. In western countries one is trying to force reduction of sugar but in the upcoming economies the sale of sugar is still expanding through cookies, sweets and soda pop.

Another major market driver is the oil price. At low oil prices ethanol is not very popular but when oil prices are soaring so is the demand for ethanol. Contrary to other crops sugar has not to cope with a faltering demand.

Sugar is coming from sugar beets (Europe), sugar palms (Asia) and sugar canes (rest of the world). Cane sugar is good for 80% of the global production of sugar. Weather conditions are very important to the sugar harvest and this sugar ETF.

In many countries sugar is confronted with high tariffs to protect the local farmers. All these influences, the weather, oil prices, trade tariffs are making way to a highly volatile sugar market.

Increases and declines of 200% to 300% within a year are very common. Looking at the price of this sugar ETF over a few years you may see even 400% differences. 

ETFS Sugar ETF

The sweetest ETF around of course. This ETF Securities Sugar ETF is tracking the Bloomberg Sugar Subindex.

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