Sugar Market Escapes Virus Vortex as Open Interest Hits Record
- Deficit outlook makes sugar 2020’s best-performing crop market
- Volatility is spiking, spreads are soaring on supply concerns
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With most commodity prices in meltdown amid coronavirus fears, sugar stands out a star performer thanks to forecasts for a global deficit.
Supply concerns are piling up as adverse weather threatens crops in Pakistan, India, Thailand, China, the U.S. and Mexico. Investors are taking notice, rushing into the market that’s this year’s best-performing agricultural commodity. Open interest, a measure of contracts outstanding in sugar, has surged to a record. Money managers have had net-bullish wagers for seven straight weeks, the longest streak since 2017. Volatility is soaring, and spreads between futures contracts are also on the rise.