Normally within these reviews of various assets we like to save a short quip or pun until the very end of each page, but with sugar, well, the pun is so good and so obvious that we just couldn’t hold on to it much longer:
Trading in sugar binary options can leave a very sweet taste in your mouth!
Ok, we got the pun out of the way, so let’s take a little closer look into what makes sugar such a great binary option asset and a great way for you to trade successfully.
Believe it or not, our ancestors used to live in a world that had far less sugar, and if you go far back enough – no sugar at all in what we now call the western hemisphere.
As late as the crusades in the 10th and 11th centuries, if one was in need of a sweetener, the only option available was honey.
Even after crusaders returned to Europe sugar was still an extreme rarity, and would not begin to gain popularity until the 15th century at least, when the city of Venice became a central hub for sugar imported from the east and its transfer to the rest of Europe for sale.
At that time, the greatest source of sugar were sugar cane fields in the Indian sub-continent and advances in marine trade only severed to make transport easier and more practical than months across land and treacherous areas.
As centuries passed, sugar started gaining popularity in Europe and demand soared to new heights, requiring greater production amounts with each passing year, Sugar began being exported from South America, mostly by Portugal and Spain, it was around that time that British people began using a second source for sugar – beet root, which was found to have very similar content to that of sugar cane but was far more suitable to European climates, advances in the refining of sugar were made throughout the industrial revolution age, bringing about the explosion in sugar use from the mid-18th century onwards.
The popularity of sugar in modern culture is quite plain to the naked eye – the average person consumes roughly 24 kilograms of sugar per year (an amount that is raised a further 33% in industrialized countries) and global manufacturing has reached over 160 million tons per year over the past decade or so.
Production of sugar across the globe is widespread, with more than 100 countries producing at least some form of sugar in marketable quantities, but the trade is ruled by Brazil, India, the EU, China and Thailand, each producing over 10 million tons annually.
But sweet as it may be, you should not approach this valuable commodity without some care, there are two major factors that can impact world sugar prices, and therefor sugar binary options: the first cause, which is entirely natural is nature itself, or to be more exact: weather.
While the production of sugar has been almost entirely industrialized, the supply still comes from some areas that are prone to violent weather, mostly in India and Thailand where monsoons and other storms can severely damage crops and effect the supply those countries are able to provide. But droughts in other countries also adversely affect supply, and with the global climate being what it currently is, it is entirely possible we’ll see an increase in both and with that – a decrease in the amount of Sugar that can be produced on a yearly basis.
The 2nd main factor to affect sugar prices is man itself.
While sugar is as popular now as it’s ever been, man is also becoming more aware of the health dangers it represents – obesity, diabetes, various heart diseases and tooth decay are among the main risks a high sugar diet can bring about, so it is only natural that as people become more health conscious that their sugar intake decreases, and if we were all to turn extremely health aware overnight, the sugar industry would suffer a blow it might not be able to recover from.
If you have a sweet tooth for investment and sugar the next target on your binary options portfolio, you might want to pay attention to supply and demand reports before deciding on your investment strategy, but once you do, don’t be afraid to trade in the valuable commodity that is “white gold”.