Drought Coming After El Nino Drives Sugar Higher – Call Options In Demand As Harvest Hampered
Sugar rallied on Tuesday, heading towards a re-attempt of the four-year highs around 23.45 cents per pound. Investors are betting on the commodity as the El Nino phenomenon has been hurting crops in major sugar producing countries such as Brazil, India and Thailand, by stripping them of much-needed rains.
In the week ended September 20, the net-long position in sugar climbed by 6.4 percent to 284,448 futures and options contracts, Commodity Futures Trading Commission data showed. That was the biggest gain in six weeks. Raw-sugar futures prices have jumped by nearly 50% this year and climbed continuously over the past three weeks, the longest streak of gains since June.
Buy Digital Call Options from 23.00 to 23.45 valid until 20:00 September 28, 2016