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Description of Sugar Trading Manual

- The only comprehensive, updateable reference source to the structure and conduct of the global sugar business
- Written by well-respected industry insiders
- Covers the entire spectrum of trading instruments and markets
- The essential reference for established practitioners and new entrants alike
- Ideal training resource for anyone in the sugar business

Sugar Trading Manual (STM) is set to become the leading information source for the sugar market and has been compiled from the contributions of some of the most senior and widely respected figures in the international sugar trade. STM will be invaluable for training purposes and for all those needing comprehensive information on the day-to-day workings of this complex international business.

FEATURES:

History - discovery to present day.
The Trade - current picture, costs of production, alternative sweeteners, and alcohol.
Physicals - price, freight, statistical analysis, the SAL and the RSAL, supervision, and quality.
Futures and Options - futures and options, exchanges, and technical trading.
Administration and Management - risk management, payments and documents, accounting, finance and banking.
Government Intervention - EU, USA, MERCOSUR and the Andean Pact, and the CIS.

The manual is divided into seven complementary parts. The first deals with the history of sugar and discusses the political nature of the commodity and how world trade has developed. The second explores the background of the sugar trade with chapters on current trade flows, costs of production, ethanol and alternative sweeteners.
The third looks at the heart of the physical trade with an examination of all the components that go into making the price of sugar. It also deals with the workings of The Sugar Association of London and The Refined sugar Association, how to set up a model for statistical analysis and the role of cargo supervisor. The fourth examines the detail of the workings of the futures and options market and the actors involved. The fifth deals with administration and management, covering risk management, payments, banking. The sixth examines government intervention and the place in the sugar trade of regional trading groups. Finally, the Appendices contain the ‘tool box’ for the sugar trade with examples of standard physical contracts and the rules of the New York and London futures exchanges.

Title Information

ISBN:

9781855734579

Pages:

648 pages

Format:

Loose Leaf

Product Code:

12315

Publisher:

Woodhead Publishing

Published:

01/05/2004

Press and Industry Reviews

"Novices and old hands will find it a worthwhile guide to consult. The editor has shown an experienced hand in bringing together highly renowned and authoritative authors, giving the manual a seal of quality."
- Peter Baron, Executive Director, International Sugar Organisation, London

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Customer Reviews from Amazon

About Jonathan Kingsman

Jonathan Kingsman started his sugar career as a trader with Cargill Inc. in England and the USA before moving on to the futures side of the business with ContiCommodity Services and Paine Webber. He started Kingsman S.A. in 1990 as an independent physical brokerage company operating mainly in the inter-trade market. Kingsman SA also publishes a daily market report with prices and analysis which has become the benchmark for the physical sugar trade and it is now used to set prices across the globe.

Contents of Sugar Trading Manual

Part 1: The history of sugar

Early history
Tony Hannah
The spread of sugar westwards
- The colonial era
- Sugar and slavery
- The rise of beet sugar
- Technical innovation
- The social history of sugar

Sugar in the 20th Century
Tony Hannah
1910-1914: Rapid expansion
- 1914-1918:Decline during the First World War
- 1919-1939: Rapid growth and cane makes a comeback
- 1939-1945:Decline in both beet and cane sugar production during the Second World War
- 1945-1955: Rapid recovery, first post-war International Sugar Agreement
- 1955-1965:The Cuban Revolution disrupts trade flows
- 1965-1975:The 1974 price boom unleashes far-reaching structural changes for sugar
- 1975-1985: The 1980 price boom reinforces the effects of the of 1974/75 boom
- 1985-1999: Break-up of the Soviet Union affects sugar production and consumption
- A decade of price stability from 1988 to the beginning of 1998
- The break-up of the Soviet Union
- The rise of Brazil
- Structural changes in the 20th Century
- The price of sugar: a history of volatility
- International Sugar Agreements
Part 2: The global picture

The current world picture
Farideh Bromfield
- Macro economic developments
- Deregulation
- Concentration of exports
- Dispersion of import demand
- Diversity of raw and white sugar quality
- Inextricable link between the financial and commodity markets
- Extended horizon of price setting fundamentals
- Long term trends
- The emergence of multinational producers and users
- Greater regional integration
- Changing attitudes to agriculture protection
- Fundamental trends

Costs of production
Philip Digges and James Fry
- Rationale behind production cost studies
- Choice of benchmark
- Comparing sugar production costs with the world sugar price
- Comparing sugar production costs with other sugar prices
- A comparison of cane and beet sugar production costs
- A comparison of sugar production costs for a group of selected cane and beet sugar producing countries
- Technical performance and its impact on costs
- Field performance
- Factory performance

Alternative sweeteners
Lindsay Jolly
- Starch sweeteners
- High Fructose Corn Syrup (HFCS)
- Americas: sugar and HFCS
- Asia: sugar and HFCS
- Europe: sugar and HFCS
- Rest of world
- High intensity sweeteners
- Global perspective
- By major HIS
- HIS by major country/region
- Intense sweeteners and low calorie bulking agents (poly-ols)
- Prospects for intense sweeteners
- Conclusion
- HFCS and sugar
- HIS and sugar
- Appendix: Characteristics of high intensity sweeteners and polyhydric alcohols

World ethanol production and trade
Christoph Berg
- The productFermentation and distillation
- Fermentation and distillation
- World ethanol production: a regional analysis
- Crisis and reform in Brazil
- The USA: greater role for ethanol
- The European Union: fuel ethanol production to grow
- Eastern Europe: illicit production continue to plague industry
- Asia: production to receive a boost from bio-ethanol
- Africa: large players add value to ethanol
- World production outlook
- World ethanol trade
- Estimating the world ethanol trade volume
- A regional analysis of ethanol trade flows
- Europe
- Asia-Pacific
- World trade summary
Part 3: Physicals

Sugar pricing
Robin Shaw and Samer Darwiche
- The futures component
- Leaving it to chance
- Sellers executable orders (SEOs)
- Against actuals (AA)
- Options on futures
- Physical premiums or discounts
- The basis
- Delivery rules
- Importers/exporters grouped by region
- Trading opportunities
- Conclusion

Sugar freight
Stephen Baldey
- Liner or tramp
- Liners
- Tramping
- Voyage or time charter
- Voyage charter
- Time charter
- Voyage estimate – dry cargo
- Charter party
- Owners and description of vessel
- Position of the vessel
- Loading area
- Discharging area
- Agents
- Taxes
- Freight payment
- Notices and cancelling date
- Stevedores and fiost
- Mates receipts and bills of lading
- General protectives
- Loading and discharging laytime
- Deviation
- Demurrage and dispatch
- Waiting
- Extra insurance
- General average
- Time bar
- Arbitration
- Sub let
- Satellite tracking
- Certificates
- Breaking up
- Rider
- Commission
- Additional clause
- Trends

Statistical analysis
Rod Boltjes
- The quarterly 'S&D' format
- Sources of information
- Quality conversions
- Other conversions
- How to use the database
- Relationships
- Net of production minus consumption versus flat price
- Ending stocks as a percentage of consumption versus flat price
- Net raws trade versus flat price
- Net whites trade versus whites premium
- Cash premium analysis
- Other uses of the database
- Significance of the fundamental range
- Conclusion

The Sugar Association of London (SAL) and the Refined Sugar Association (RSA)
Derek Moon
- Why do trade associations exist?
- How are trade associations managed?
- The regulatory organisations for the international trading of physical raw cane and beet sugar and physical refined white sugar
- How does the arbitration system work?
- Supervision of the raw sugar cargoes delivered to the UK by The Sugar Association of London
- Why is supervision necessary?
- Other services to the trade

Supervision
Robert G Danvers
- Definition
- Nomination
- Role of the supervisor
- Documentation
- Claims
- Arbitration/litigation
- Conclusion

Sugar quality
Tom McNeil
- Quality aspects of raw refined cane sugars
- The refining process
- Affination
- Melting
- Clarification
- Filtration
- Decolourization
- Crystallization
- Centrifuging
- Drying and grading
- Other processes
- Recovery boilings
- Critical steps in refining sugar
- Affination
- Clarification
- Filtration
- Decolourization
- Crystallization
- Further processing
- Utilisation of sugar in food marketing
- Grades of raw sugar
Part 4: Futures

Futures and options
James Cassidy and Michael McDougall
- History and background
- Market participants
- Non-commercials
- Commercials
- Producers
- European producers
- Industry
- Others
- Options strategies
- Conclusion

The exchanges
Doug Nicholson
- The New York Coffee, Sugar and Cocoa Exchange (CSCE)
- Futures contract on sugar No. 11 (world)
- Contract terms
- Going to delivery
- Arbitration
- Force majeure
- Recent deliveries
- LIFFE
- LIFFE No. 5 White Sugar Futures Contract
- Contract terms
- Administrative procedures
- The Tokyo Grain Exchange

Technical trading
Jonathan Kingsman
- Technical versus fundamental analysis
- Why does technical analysis work?
- Walking under ladders
- The investment funds
- The tools of the technical trade
- Trend lines and channels
- Moving averages
- Oscillators
- Moving Average Convergence Divergence (MACD)
- Resistance and support levels
- Volume
- Open interest
- Commitment of traders report (COT)
- Relative strength index (RSI)
- Money flow index (MFI)
- Stochastic indicator
- Parabolic SAR system
- Directional movement index (ADX)
- Daily sentiment indicator (DSI)
- Candle charts
- Risk management and moral hazard
- Conclusion
Part 5: Futures

Payment and documents
John Maton
- Cash against documents (CAD)
- Letters of credit (L/C) or documentary credit (credit)
- Bid bonds (BB) and performance bonds (PB) and guarantees

Accounting
Simon O'Mahoney
- Commercial approach
- Special features of sugar accounting
- Narrow margins
- Forward trading of physical contracts
- Futures trading
- Volatility
- Positions
- Documentation
- Accounting principles
- Matching
- Accruals
- Prudence
- Control
- Presentation
- Futures margins
- Original margins
- Variation margins
- Positions
- Contract pricing
- Fixed price
- Against actuals or exchange for physicals
- Executable orders (EO)
- Vessel accounting
- Futures accounting
- Despatch and demurrage
- Currencies
- Internal markets
- Quotes and licences
- Quotas
- EU licences
- Certificates of quota exemption (CQEs)

Finance and risk management
Roger Bradshaw
- Primary production financing
- Farms
- Plantations
- The future
- Financing sugar factories and mills
- Currency matching
- Short-term finance
- Long-term financev
- International sugar trade
- Trade houses
- Payment instruments
- Tolling
- Counter-trade
- Bid bonds and performance bonds
- Fraud
- Changes to the capital adequacy requirements of banks – Basel II
- Managing risk
Part 6: Regional markets

The European Union
Joan Noble
- The EU sugar policy 2001-2006
- Support prices
- Prices, support payments and exchange rates
- Production quotas
- Sugar imports and the EU's raw cane refining industry
- EU supply
- EU preference
- EU sugar exports
- Intervention
- Other aspects of the sugar regime
- Financing of the sugar regime
- Pressure for change: the EU sugar policy from 2006
- Internal pressures for change
- External pressures for change
- EU enlargement
- The future

The United States
Frank Jenkins
- US sugar policy
- Tariff rate quota
- Sugar programme apparatus
- Re-export programmes
- The US sugar beet industry
- Far West
- Great Lakes
- Great Plains
- Red River Valley
- The US cane sugar industry
- Florida
- Louisiana
- Hawaii
- Texas
- Puerto Rico
- Industry structure
- Free trade

MERCOSUR and the Andean Community
Leonela Santana-Boada
- MERCOSUR and the Andean Community Agreement
- Sugar in the MERCOSUR Agreement
- Impact of MERCOSUR on members' sugar economies
- Sugar in the Andean Community
- Impact of Andean Community (CAN) on members' sugar economies
- Conclusion

Commonwealth of Independent States
Sergey Gudoshnikov
- Sugar production: trends and developments
- The European countries
- The Asian countries
- Conclusions
- Sugar consumption: trends and developments
- Foreign trade in sugar: trends and developments
- The European countries
- The Asian countries
- Conclusions
- National sugar policies and market structures
- The European countries
- The Asian countries
- Conclusions
Part 7: Appendices