The Dow Jones-UBS Sugar Subindex Total ReturnSM is a sub-index of the Dow Jones-UBS Commodity Index Total ReturnSM and is intended to reflect the returns that are potentially available through an unleveraged investment in the futures contracts on physical commodities comprising the index as well as the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. The Dow Jones-UBS Sugar Subindex Total ReturnSM is a single-commodity sub-index currently consisting of one futures contract on the commodity of sugar, which is included in the Dow Jones-UBS Commodity Index Total ReturnSM.
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Cattle prices are nearing new highs, pushing up the cost of beef in supermarkets. Along with recent hikes in grain and sugar, investors are growing increasingly worried about a broader wave of food inflation.
Globally, sugar prices have jumped more than 45% since May, and surged again on Friday after the U.S. said it would ease import restrictions to help avert a national shortage. But will sugar keep going up as traders worry about this year's shortfall, or undergo a correction as the industry talks about a bumper harvest next year and speculators take their profits?
Update on your morning cup of joe: J.M. Smucker (SJM -0.4%) is raising most of its coffee prices (including brands like Folgers, Dunkin' Donuts and Millstone) by 9% due to higher long-term costs coming on green coffee beans, including Port of New Orleans issues related to the Gulf spill. Meanwhile, ships are clogging Brazilian ports on a sugar rally that many expect to run to a 28% gain by year-end.
Investors should sell bonds and buy commodities as a “refuge” against continuing problems in the world economy, Jim Rogers says. Agricultural commodities are even better than metals as prices are “very depressed,” he says, pointing to sugar, which is 75% below its all-time high in 1974.