Wt Sugar Discussion Threads

[eriktherock] 29/12/2008 09:11

25.12.08 NEW DELHI: The Centre is mulling the option of extending the re-export deadline for raw sugar imports to the tune of about eight lakh tonnes
under Advanced License (AL) scheme, against a tight sugarcane output for the 2008-09 season. Indications are that the decision could be taken in the next fortnight.

The 800,000 tonnes of raw sugar in question were imported several weeks ago by mills and were scheduled, under the AL scheme, to be re-exported as refined sugar under the 'grain to grain' norm within two years of import. The decision by early January could be aimed at increasing domestic sugar supply and keep a firm check on domestic sugar prices in the run up to the general elections in the first half of 2009.

The government's current sugar production assessment for 2008-09 is only 19 million tonnes as compared to a much higher 22 million tonnes earlier, a significant shortfall of three million tonnes. That, and its implications on the domestic demand-supply equations, is the scenario against which the government's current policies on both sugar export and import are being reviewed and hotly debated within the sector.

[hectorp] 27/11/2008 15:12

thanks for that reassuring post,
we don't want a great harvest!
made ist ever long position today just £20 a point London sugar ( March 09)
I se its up 3p too.
I would like to have some idra of where it could end up, if the sugar reverts to higher prices.
Its great to have a different commodity sector too , from gold.

[nabcom] 26/11/2008 13:10

October 31, 2008
Weather Could Limit Indian Cane Crop And Affect Sugar Prices

By Michael Ferrari of Weather Trends International

[hectorp] 25/11/2008 11:35

Jim Rodgers hass been buying sugar, and the YEN. Sugar chart suggests a run upside is certainly a possibility.
Spread bet london sugar on IG ( must stake £15.00 / point).

World Sugar MArket review

In 2008/09, for the first time since 2004/05 world production is expected to decrease, to -161.649 mln tonnes, raw value, a massive 7.353 mln tonnes down from the last season. World consumption is put at 165.547 mln tonnes, raw value, up 2.35%, generally in the line with the long-term average growth. The first forecast of the world sugar balance for the period from October 2008 to September 2009 puts world production 3.898 mln tonnes lower than world consumption. Thus, the distinctive global surplus phase has ended and the market is likely to move into a deficit phase.

[hectorp] 25/11/2008 11:34

Jim Rodgers hass been buying sugar, and the YEN. Sugar chart suggests a run upside is certainly a possibility.
Spread bet london sugar on IG ( must stake £15.00 / point).

[m4ybe] 04/10/2008 04:59

commodities are not the place to be (global deflation, even in Thailand land I have had my eye on on for years has fallen to a third of what it was), but at least commodities are outperforming equities! NU the uranium fund dropped 50% while futures price stayed the same, but that has been a leading indicator, don't buy even that.

[yangou] 03/10/2008 09:11

Hmm seems this now does not know whether to go up or down. Any thoughts on this one folks? Thinking of selling

[yangou] 24/9/2008 10:25

I was just about to start using sweetners but perhaps i will hang on to sugar a little longer

[nabcom] 19/9/2008 22:32

Commodity Securities and AIG – Update

19/09/08




An update on ETF Securities

By Deputy Editor John Stepek Sep 19, 2008

[yangou] 19/9/2008 21:21

Its to do with AIG. So guess we must wait to see who will insure or finance the etfs outfit from now. The other commodities were doing the same this week but recovered some ground again.Lets hope this one does too

[nabcom] 18/9/2008 08:16

Commodities ETF's Trading Freeze Due to AIG Fears

Sep 17, 2008 - 07:29 AM
By: Mark_OByrne

According to reports, many of the products issued by ETF Securities are backed by credit agreements with AIG. They carry a credit risk similar to the one facing exchange-traded notes; i.e., if the party backing the ETCs goes bankrupt, shareholders become creditors of the firm.

AIG's collapse and quasi nationalisation is leading to concerns which are affecting ETF Securities' AIG-backed products. According to a press release issued by the company, "a number of firms who were making markets in the [AIG-backed] Commodity Securities stopped doing so yesterday afternoon."

As a result, many of the ETCs did not track their underlying indexes during trading on September 16. Some products appeared to have stopped trading altogether, and there is no fully liquid market in the shares. The company is working on alternate ways to provide investors with liquidity. For instance, it is trying to permit holders of the securities to redeem them directly from the issuer; typically, only large-scale authorized participants are allowed to do this. It is also trying to arrange suitable collateral to entice market-makers back into the market.

It notes that, "we can give no assurance as to whether these or other alternatives can be implemented at this stage."

ETF Securities deny that their precious metal ETFs will be affected ETF Securities deny that their precious metal ETFs will be affected ( such as Gold Bullion Securities) and say that the "credit risk from one group does not and cannot bleed over into the others." They claim that as the precious metal funds are backed by physical bullion, they carry no credit risk.

more at:

[jackpipe] 17/9/2008 23:07

I take it the ETFs have actually been tracking the markets during this outage, and that it's just a problem getting new customer money in, or out?

[didierdrogba] 17/9/2008 22:54

It relates to AIG. See the following link.

Apparently normal trading will resume tomorrow. Fingers cossed.

[londonman] 17/9/2008 22:12

The LSE website says this 'security is suspended'. anyone know why?

[yangou] 15/9/2008 16:34

Hold on to your seats

[jackpipe] 11/9/2008 13:50

LOL. Forget those SG warrants erik, they're a total rip-off.
Better to get an account that does real futures optiions, eg openecry, optionsxpress, IB, etc.
If you could short those warrants though....

[eriktherock] 11/9/2008 12:33

Societe General. Heads we win, tails you lose !

[eriktherock] 01/9/2008 09:53

Well, we on here have recognized the signs.

[jackpipe] 01/9/2008 09:01

"Gustav's projected storm surge stood to cut through the heart of Louisiana's sugar industry in southern Louisiana, which includes 600 growers, 11 processing mills and an estimated $500 million annual crop value, according to the American Sugar Cane League."

And sugar is down this morning?

[yangou] 01/9/2008 08:14

Wild girations this morning . Lets hope it takes us to the upside where i beleive it will go.

[drdre] 12/8/2008 08:52

Looks a very interesting speculative play - a Black Swan, like you say, although wouldn't a rise of some kind be nearly expected? ;)

DR