Overview of Sugar Commodity trading

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The largest producer of Sugar in the world is Brazil. India is the largest producer of Sugar after Brazil. India is known to produce about 22 million tons of sugar annually with major production coming from Maharashtra. Sugar is usually found in granules or in sand like form. It has a very sweet taste with white color. Sugar is produced from plants like Sugar cane, beet root and sugar maple. Sucrose is found is ordinary sugar. Sugar is also used in preparation of many foods and drinks world wide.

There are many varieties in Sugar. Some of them are White or refined sugar , Icing Sugar, Brown Sugar, Raw Sugar, Dark Brown sugar, Caramel sugar and Caramel to name a few. There are also some hybrid sugars like S Sinense, S barberi, CO-213, CO 223 etc.

Major Sugar Producers in India:

Majority of the states from India are into production of sugar. Some of the states from where the production is high are Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Orissa, Punjab, Tamil Nadu, Uttar Pradesh and West Bengal. There are about 450 sugar mills in India.

Trading of Sugar:


Sugar is traded in all the World markets. It is also a good commodity for beginners in commodity trading. Sugar is known to make real good moves and also requires a small margin to trade. Sugar trading is done only for three hours in a day. The timings are from 9am to 12 pm. If you are an expert sugar trader, then those 15 hours in a week can earn you a decent amount.

The best time to buy sugar is when the markets are low as you can get the futures at a very cheap price and you can buy more number of lots. One can also check the long term patterns and formations made by sugar when it comes to technical analysis as it does give out a lot of information related to the spreads, the price range and also about the support and resistance levels. One can also take clues from Wave analysis and also swing trading as well.

If there is a really big move, then it is always exit the position at the time of close or even if it is the morning opening. If you have already made a good profit, try not to carry forward our position and strictly exit the position if it is a Friday. Do not expect to make more profit on Monday when the trading session opens, as Sugar is know to reverse its trend after real big moves.

It is always important that trading cannot always be done by planning. The market or the commodity that you might be trading might as well move as per your prediction but you still might be making losses. It is always important to know your exit once you take any position and when trading with Sugar you really need to be cautious as it is always known to make real big moves. Analyze and study the commodity before you get into a trade.
Happy Trading!