Why is futures sugar more than 500 cheaper than spot, while futures palm oil is more than 400 more expensive than spot? Why is this happening? Please help explain!
Under normal circumstances, the futures price should be higher than the spot price. At present, the price of sugar futures is upside down, and the spot price can't come down because of the support of sugar spot merchants and manufacturers. However, the amount of foreign low-priced sugar arriving in Hong Kong is relatively small, which has no impact on the domestic sugar market. This is why the spot price of sugar is higher than the futures price.