Sugar futures are contracts that obligate the buyer to purchase a certain amount of sugar at a set price on a future date. Trading in sugar futures allows various entities, including sugar producers, consumers, and speculators, to manage their risk and potentially profit from price fluctuations.
Futures trading has significantly influenced the sugar industry. It provides price stability, facilitates efficient risk management, and aids in the smooth functioning of the physical sugar market. Historically, sugar futures have played a pivotal role in the industry’s growth and development.