What is Sugar?
Sugars are found in the tissues of most plants, but the most commonly recognised form of sugar for production and refining is sugarcane and sugar beet.
Monosaccharides are referred to as simple sugars and are represented in several forms including fructose, galactose, and glucose. Fructose is sugar that occurs in fruit.
Galactose determines blood groups and is a part of the antigens present on the surface of red blood cells. Glucose is present in fruits and plant juices and glucose syrup is that liquid form of glucose that is commonly used in the mass production of foodstuffs.
Uses of Sugar
Sugar plays a crucial role in the food and beverage production industries. It is a necessary ingredient in the alcohol production process as fruit sugars convert to alcohol. Sugar is the mainstay in jams, syrups, ice-cream, and confectionary.
Risks of Sugar
Trading sugar futures offer both liquidity and high volatility. This volatility means that large profits or losses can be made very quickly. This commodity is also recognised as following a 'seasonal pattern' due to weather conditions. These weather conditions are a factor with frost conditions affecting sugar beets and disaster conditions potentially wiping out a countries output numbers for a year.
Investors that are inexperienced should only trade sugar futures with the help of a professional.