Inside The Continued Surge In Sugar ETFs

The rally in sugar prices seems to be unstoppable when most of the other commodities are finding the going tough. Its days of a supply glut ended in late August when future prices touched the lowest point since 2008. Since then, raw sugar prices at New York Mercantile Exchange recovered nearly 40% to around 14 cents per pound as of October 27, 2015, despite a surprising 1.5% fall in Tuesday’s trading session (read: Is Sugar The Best Commodity ETF Right Now?).

The recent strengthening of the U.S. dollar on the back of Euro zone and Chinese stimulus measures could not derail the greenback priced commodity off the track. In fact, Morgan Stanley predicted raw sugar prices on the New York exchange will average 15.2 cents per pound in the final quarter of 2015 and 17.3 cents per pound in 2016.