Sugar call options give a buyer exposure to rising futures prices. Follow one contract from premium paid to its result at expiration.
How sugar options work
The examples use options on Sugar No. 11 raw sugar futures. A call gives the right to enter a long futures position at the strike price. A put gives the right to enter a short futures position at that price.
A food producer may use sugar calls, but raw-sugar futures are not an exact match for the delivered cost of refined sugar.
The cost of one option
One ICE Futures U.S. contract represents 112,000 pounds. The exchange quotes this product in cents per pound; the examples convert those quotes into dollars. A premium of 1 cents equals $0.01 per pound. At a premium of $0.01 per pound, one option costs $1,120 ($0.01 × 112,000).
Assume the futures price and strike are both $0.2 per pound. The call and put premiums are each $0.01 for comparison, not current quotes. Results below are at expiration, before fees, with any futures position from exercise immediately closed at the stated price.
Buying sugar calls
Suppose you expect sugar prices to rise and buy one $0.2 call for $1,120.
If the underlying future reaches $0.23 per pound at expiration, buying at $0.2 gives an advantage of $0.03 per pound. Across 112,000 units, that is $3,360. After the premium, your net profit is $2,240.
At $0.2 or below, the call expires worthless and the loss is $1,120. Breakeven is $0.21 per pound: strike plus premium. At $0.205, the call has value but still loses $560 after its cost.
Before expiration
An option can be sold to close before expiration when a market is available. Its price then includes the effect of remaining time and implied volatility, so an earlier trade need not break even at the expiration price calculated above.
The purchased option can lose its whole premium. Exercise can create a futures position requiring margin and exposing you to further gains or losses. An uncovered seller can lose more than the premium received.
Sugar price chart
OANDA Sugar CFD reference price. This broker CFD (contract for difference) is a market reference, not a spot price or an exchange futures contract. Prices and quoting units may differ from the contracts described in this guide. Check the widget timestamp and market status; prices may be delayed.
References
Official contract information. Examples are hypothetical and exclude fees. Contract information checked 14 September 2026.