Sugar Trading LIFFE & ICE

[mrbobls]

I am looking to trade LIFFE Sugar against ICE Sugar i.e White Sugar #5 against Raw Sugar #11

I understand the conversion factor of 22.0462.

Has anyone got any thoughts how to go about this, the volume seems very small? Do you think this is the wrong way to go , maybe calendars against calendars?

What websites seem to be good for information? Sugaronline: Sugar and Ethanol news, prices and reports. seems to be the best I have found


Thanks for any help in advance

 

[dharmender]

Hi,

the conversion factor is definately correct.

You can surely do arbitrage trade, however, please also take care of the movement in physical markets. The white premiums in the physicall market keeps changing and so you should be able to understand how the difference in the two would move.

Furhter, all the months are name same on both the exchanges/contacts and the date of expiry for the same month contract is also different.

regards,
Dharmender