Sugar No. 11 Futures Margin & Contract Specifications

What is Sugar No. 11?

Sugar No. 11 is derived from sugarcane and has not yet been refined into white sugar. This raw sugar is subsequently transported to refineries, where it is processed into the white sugar commonly used in everyday consumption. It serves as the standard grade for global cross-border sugar trade. Most sugar exports from Asia, Latin America, and Africa are priced with reference to Sugar No. 11.

Sugar No. 11 futures are the world’s most important benchmark for raw sugar futures, primarily reflecting international prices of unrefined cane sugar. They are among the most actively traded soft commodities globally. Price fluctuations directly affect the food processing industry, the beverage industry, and even the energy sector, particularly ethanol production. Sugar No. 11 futures are traded on the Intercontinental Exchange (ICE) in New York.

Factors Affecting Sugar No. 11 Prices

1. Brazilian production

Brazil is the world’s largest sugar producer and exporter, and its production levels directly set the tone for the global market. For example, excessive rainfall in southern Brazil that disrupts harvesting can lead to significant increases in sugar prices.

2. Sugar-to-oil ratio

Sugar is one of the few agricultural commodities that is highly linked to energy markets, because Brazilian mills can switch production between sugar and ethanol (fuel). When international crude oil prices fall, ethanol production becomes less profitable, prompting mills to shift toward producing more sugar. This increases market supply and puts downward pressure on sugar prices.

3. India and Thailand’s export policies

India is the world’s second-largest sugar producer. When the government imposes strict controls on sugar exports, reducing global supply, it can provide downside support to sugar prices to a certain extent.

Thailand is also a major global sugar producer. If Thailand increases its sugar output, it will boost supply in Southeast Asia and put downward pressure on global sugar prices.

4. Importing countries’ policies

Import tariffs, quotas, subsidies, and price controls in countries such as India, Indonesia, and China are also factors influencing sugar prices, and policy changes often trigger short-term volatility.

5. U.S. dollar trends

Sugar is a commodity priced in U.S. dollars. When the U.S. dollar remains strong, it weakens the purchasing power of countries using non-U.S. currencies, exerting downward pressure on sugar prices.

SUGAR#11 Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

SUGAR#11 Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for SUGAR#11Futures.

SUGAR#11Last Trading Day

Futures