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Playing Sugarcane/beets?

post #1 of 5
Thread Starter 

anybody know any good ways to play sugar?

SGG is to thin for me to get options in it. and most everything else ive found is too thin as well.

 

i was thinking hershey or other sugar companies but they probably hedge and have plenty of counters to fluctuations in sugar prices.

So i really want a close to pure play on the commodity without having to buy any sugar future contact.

 

im bullish on sugar for this summer for various reasons.  I appreciate any input

post #2 of 5

have you considered buying options on the futures contract? looks like the spread is 7tick. if your really bullish i dont see why that would be too wide.

post #3 of 5

Brazil and India are the biggest sugar producers, perhaps their ETFs could be worth a look. The problem there is that is far from a pure play.

post #4 of 5
Thread Starter 

Hey Mike, to do that Im pretty sure i need a futures account, correct?  Where do you see the spread?  I cant find it.

 

Brazil's ETF is CZZ but it produces ethanol and other byproducts that i know little about.  plus it doesnt correlate very well with sugar prices.

Looks like ill move on to another play til i decide to open a futures account.  thanks for the comments

post #5 of 5

o ok i thought you didnt want to trade the futures because of the risk. Ya you need futures on your account and your broker has to offer options on them.

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