Soft commodities risk management: navigate sugar markets with StoneX

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Our softs division offers price-risk management solutions in sugar through consultants who speak a wide range of languages, including English, Spanish and Portuguese.

Why soft commodities risk management?

All participants in the soft markets face price volatility. Currency movements, government funding, weather changes, health concerns and ethanol demand are among the factors that can significantly impact sugar prices. StoneX helps producers, cooperatives, importers, processors, and wholesale users of sugar manage the risk associated with this volatility and protect their bottom lines from it.

Our services include:

  • Sugar futures and options execution

  • Sugar risk management consulting

  • Market Intelligence

  • Currency and structured pricing products

  • Trade finance

Why choose StoneX?

StoneX is more than a service provider or sugar broker – we are your partner. Our goal is to help offer the right solutions that propel your business forward and outperform the competition.

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Global reach

As a Fortune 100 company, we have over 80 offices around the world across six continents, including locations in Miami, Brazil, Colombia, London & Singapore.

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Price-risk management expertise

Experience a full set of tools to manage your price-risk, from exchange-traded sugar futures and options to currency price-risk management and trade financing.

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High-touch service

We go out in the field to talk directly with sugar producers and co-ops, importers, and end users about their businesses.

The StoneX difference

Deep fundamental knowledge

Our risk management consultants are out in the field, talking to growers, co-ops, importers, processors, and wholesalers about the issues their businesses are facing. This gives us a deep understanding of the fundamental issues impacting industry participants and helps us to deliver risk management solutions customized to their unique needs.

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Commodity price-risk management expertise

Our consultants are experts in commodity price-risk management. They work with customers to identify and quantify their price-risk. The consultants then help customers select and employ the best tools to manage that risk. This includes exchange-traded futures and options, cash and forward-market contracts, and customized over-the-counter products.**

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Additional resources

As a global leader in commodity and financial services, StoneX can offer customers a broad array of solutions to meet their diverse needs, including currency price-risk management and trade finance.

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Our clients

Sugar prices can be impacted by a wide range of factors, but StoneX helps mills, refineries, exporters/importers, and food and beverage companies to manage their risk and navigate the sugar market.

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Sugar mills & refineries

We work with companies worldwide that produce, refine and process sugar, providing risk management, hedging, and complete marketing services to traders, processors, manufacturers' elevators, and end-users.
Professional discussion on innovative FX hedging strategies and services, highlighting accessibility for mid-size businesses and diverse market partnerships

Exporters/Importers

Exporters need to carefully assess and hedge against price risks to safeguard profit margins, while importers need to anticipate and manage potential cost fluctuations. We work with both to utilize tools like futures contracts, options, and forward contracts to help mitigate sugar price volatility and secure stable trading conditions for our clients.
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Food & beverage companies

All food and beverage companies face commodity price risk, but each requires unique solutions. We leverage extensive market access and deep sugar market expertise to help food processors, manufacturers, and consumer packaged goods companies overcome those risks.

Are you a sugar producer, importer/exporter, trader or end user? We can help.

Get in touch with StoneX – we’re ready to assist you.

BOTG: Sugar & Ethanol (Brazil)

We explore one of the biggest sugar exporters in the world, gaining key insights across production, consumption, purchasing, selling and much more to deliver to our customers.

 
We explore one of the biggest sugar exporters in the world, gaining key insights across production, consumption, purchasing, selling and much more to deliver to our customers.
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FAQ

What are sugar futures?

Sugar futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of sugar at a predetermined price on a future delivery date. Sugar futures are a popular way to trade sugar, as they enable market participants to manage price risk, and consumers and producers trade sugar futures to secure selling or purchase prices. Futures are the most popular way of trading sugar if you want to invest in the physical commodity, offering high liquidity and volatility.

How to trade sugar futures?

ICE offers two sugar contracts: one that trades into 112,000 pounds of world sugar #11 (the benchmark for raw sugar worldwide) and the white sugar #5 futures contract that trades into 50 tones (the global benchmark for the pricing of physical white sugar). Both are traded globally on the ICE electronic trading platform. The world sugar #11 contract has four expiration months: March, May, July, and October; while the white sugar #5 futures contract has five expiration months: March, May, August, October, and December. Futures are derivative instruments that can be added to a comprehensive risk management strategy, while also allowing speculators to make leveraged bets on commodity prices. To trade in futures, traders need a high level of sophistication, given the impact of factors such as storage costs and interest rates on pricing.

Let’s get connected

To learn more about how our customized financial solutions can help you stay one step ahead in the global markets, contact our team today.

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The trading of commodities and derivatives such as futures, options, and swaps involves substantial risk of loss and may not be suitable for all investors. Advisory services as well as the trading of futures and options is available through various subsidiaries of StoneX Group Inc. including but not limited to the FCM Division of StoneX Financial Inc. Public Disclosures for the FCM Division of StoneX Financial Inc. The trading of over-the-counter products or swaps is available through subsidiary StoneX Markets LLC to individuals or firms who qualify under CFTC rules as an eligible contract participant. Please click here for the full disclaimer.

StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.

StoneX Financial (HK) Limited ("SHK") (CE No.: BCQ152) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.

SFP acts as an appointed agent for SFL's payment services business.