Here's another news bit that appears to be medium-long term bullish for sugar futures. I recall reading that sugar based ethanol is cost competitive with oil at $50 or above, so even with the recent correction in oil, the sugarcane based ethanol industry of Brazil continues to boom.
peHUB: Paladin Puts Sugar in the Gas Tank
The Brazilian ethanol market is booming, due to both the cost-effectiveness of sugarcane and a national adoption of ethanol as the power source of choice. Ninety percent of new cars sold in Brazil are flex-fuel, and new plants keep popping up to satisfy demand. VREC will focus on building new production plants, which will include co-generation facilities that can sell gas byproduct into the Brazilian power grid.
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1 comment:
Given that 09 CL options open interest is skewed to puts, oil is looking to create a temporal resistance at 50, so sugar should be a short.
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