The price of sugar is heavily dependent upon global supply and demand forces. Today the world’s sugar situation is even more complicated by the explosive emergence of the ethanol industry tied to the complex energy markets. Other factors affecting the pricing of sugar include global economic conditions, increased geo-political tension, trade liberalization initiatives, active index fund participation and increased energy prices. All of these factors combined have created an environment of fluctuating commodity sugar prices. This negatively impacts the sugar industry’s ability to maintain their budgets, and achieve their margin and profit objectives.

Working with FCStone to employ prudent risk management procedures, companies can more effectively manage their commodity price risk and successfully impact their profit margins. FCStone Sugar and Ethanol Consulting Group offers unique market intelligence and innovative financial solutions to address commodity price volatility. With a history dating back over 80 years, FCStone brings unparalleled experience to help sugar industry players mitigate volatile price risks. Through the Integrated Risk Management Program (IRMP), FCStone provides companies with the solutions, tools and platforms necessary to meet budgets, stabilize price inputs and ultimately secure margins.