Commodity Brokerage / Agricultural Commodities / Sugar

Agricultural Commodities

Sugar

The international sugar market is divided mainly between raw cane sugar and refined white sugar.

MARKET REFERENCES

How the market commonly references price

There is rarely one universal price for a physical commodity. Commercial value depends on the benchmark, specification, origin, destination, timing and logistics agreed between buyer and seller.

  • ICE Sugar No. 11 — global raw sugar benchmark
  • ICE White Sugar — refined sugar benchmark
  • Origin physical premiums / discounts

TYPICAL COMMERCIAL STRUCTURE

How physical pricing is often built

Raw sugar physical cargoes commonly reference ICE No. 11 futures ± origin/quality premium or discount. White sugar transactions often reference the ICE white-sugar benchmark ± physical premium. Freight is added for CFR/CIF delivery.

PRICE DRIVERS

What moves the physical differential?

  • Brazil / India / Thailand crop
  • Ethanol economics
  • Polarisation / quality
  • Currency
  • Freight

PHYSICAL TRADE

Commercial considerations

ICE No. 11 prices physical delivery of raw cane sugar on an FOB receiver's-vessel basis; physical contracts then reflect origin and shipment specifics.

The examples on this page describe common market conventions at a high level. Actual contracts can use different pricing periods, assessments, quality adjustments, Incoterms and negotiated differentials.

Market methodology reference: view source / methodology

PHYSICAL COMMODITY BROKERAGE

Discuss a Sugar requirement.

Share the specification, quantity, origin or destination, delivery basis and timing.

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