Imperial Sugar (IPSU) Message Board

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Non-Tech : Imperial Sugar (IPSU)

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To: Patentlawmeister who wrote (69)	1/4/2003 1:41:51 PM
From: Crossy	of 121

Cuda, I believe IPSU did some hedging in the past and I was right. Right now they own direct production capacity of 27mio cwt of cane and 4mio cwt of beet sugar. Their net hedging exposure is a meager 1.5m cwt raw sugar long position, locked in around $21.79. Frankly it doesn'T make sense to buy further long positions for raw sugar now. But if sugar climbs further, may be a good idea to sell it with a nice profit... for a processor and packager like IPSU, I get the impression raw sugar futures purchase only make sense to "lock in" cheapo prices. Since they sell processed output, a reverse hedge doesn't seem feasible, as long as futures for processed sugar aren't available.. the "Rocket" like cup & handle (actually multiples) I saw in my TA software. Really beautiful.. best wishes CROSSY

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