Trading sugar with binary options
Sugar is a major agricultural product that is traded as a commodity. It is a sweet substance, usually white in color that is primarily used as food or an ingredient for increasing the sweet taste of a certain food. This sweet substance is mostly extracted from sugar canes and sugar beets which are primarily grown in countries like India and Brazil. However these plants can also be grown in countries that have a tropical climate and warm temperatures. Sugar originated as far back in the 4th century where in the Indians was able to find a way to crystalize sugar but the Moors were the ones who were able to find a way to perfect this process and brought the growth and production of sugar to countries like Portugal and Spain which have adapted this process of manufacturing sugar.
Refined sugar which is now widely considered as a staple used to be so rare and expensive but it became widely available to almost any type of consumer in the 18th century. Today there are more than a hundred countries that are able to produce their own sugar product so the supply of this commodity is now able to cater the demands of consumers. There is currently a high demand for this product for which is mostly used in the production of foods and beverages. The most common form of sugar is the white sugar which is mostly derived from sugar cane and sugar beets and is retailed in a variety of granule sizes depending on what the consumer prefers.
What affects the price of sugar?
There are many factors that can affect the price of sugar. One of which is the increasing health problems caused by the consumption of this sweet substance. Diseases like diabetes and increasing numbers of obese people have prompted major health organizations to find alternatives to sugar and the possibility of finding a solid substitute to this product. Weather conditions can also have a major effect on the production of sugar as sugar cane only grows in areas that have tropical climates while sugar beets thrive in cooler places. Tropical storms and frost damages can hamper the production of sugar and can cause prices to spike.
Sugar is primarily traded at the Kansai Commodities Exchange, the Multi Commodity Exchange, the National Commodity Exchange Limited, the National Commodities and Derivatives Exchange, the Intercontinental Exchange, the Zhengzou Commodity Exchange and the Brazilian Mercantile and Futures Exchange.
Highly traded asset
Today, the production of sugar is backed by major funds internationally. The actual price of this asset is in fact indefinite but in an economical market, sugar prices are ought to be lower. To be able to monitor the price movement of underlying assets, it is best to keep track of the delicate indications and feedbacks about the supply and demand of this commodity. And with the help of our highly recommended binary options trading platforms , you will be able to make better trades and get sweet revenues from these highly traded assets.