At this juncture, trying to catch a bounce in SGG, an ETN that is sporting year-to-date volatility in the area of 20%, is akin to catching a falling knife. However, there might be at least one sign that SGG could provide some near-term upside for adventurous traders.
In late April, companies took delivery of 1.43 million metric tons of sugar, worth $558.3 million at the time, despite the supply glut, Leslie Josephs reported for the Wall Street Journal. That was the biggest delivery of physical sugar in 24 years, according to the Journal.
If major sugar buyers, such as consumer staples companies, continue that trend then SGG has a chance to bounce. However, sugar’s reputation as one of the most volatile commodities on the market means SGG is a speculative trade, not a core portfolio holding.
ETF Trends editorial team contributed to this article.