It is possible these interventions may be what sweetens sugar’s term structure given there hasn’t been significant shortages indicated by backwardation (adding more than 1% to the excess return) since June 2012.
This article was written by Jodie Gunzberg, global head of commodities, S&P Down Jones Indices.
© S&P Dow Jones Indices LLC 2013. Indexology® is a trademark of S&P Dow Jones Indices LLC (SPDJI). S&P® is a trademark of Standard & Poor’s Financial Services LLC and Dow Jones® is a trademark of Dow Jones Trademark Holdings LLC, and those marks have been licensed to SPDJI. This material is reproduced with the prior written consent of SPDJI. For more information on SPDJI, visit http://www.spdji.com