What does sugar carry-over mean in futures?
Sugar is a commodity produced by season and sold by year. Its production cycle is a quarter, but its sales are all year round, which leads to the difference between its sales and production, production cycle and sales cycle. If a sales cycle does not sell all the sugar produced in this production cycle, some sugar will be transferred to the next sales cycle, which is carry-over. The amount of sugar carried over to the next sales cycle is the carry-over amount.