Sugar is an important good that has been used from thousands of years. It is commonly used in sweet dishes, bakery food, juices and cold drinks, to gel some foods like jams and jellies and also used to make ethanol fuel. Due to these different applications sugar is worldwide vital goods in markets. Sugar is produced in 121 countries and its production is going above more than 120 tons per annum throughout the world. 70% of the sugar is produced from the sugarcane plant and remaining 30% is produced from sugar beet plant throughout the world. Sugar is produced all over the world but ten countries produce sugar in greatest amount that is equal to three quarters of all production of sugar. Brazil and India produce near about half of universal supply. The focus on production of sugar makes sugar mainly volatile goods.

The price of sugar depends on different factors.

  • Universally deliver
  • Universal requirement
  • Administration funding
  • Season
  • Health related issues
  • Ethanol requirement
  • The U.S dollar

Sugar is an unpredictable product, so one can earn maximum profit or loss by investing in sugar. Sugar futures contract are merchandised on New York Mercantile Exchange having size 112,000 pounds that is universal standard for raw sugar.


Rice is an essential good that is used by greatest amount of people throughout the world particularly in Asia, Latin America and Middle East. It is the agronomic good that is universally cultivated maximum 480 million metric tons per anum after sugarcane and maize. The cost of rice be influenced by some aspects that are as follows.

  • Requirement in china and India
  • Assortments
  • Seasons
  • Merchandise plans
  • Cost of crude oil

Financiers invest in agronomic goods due to several causes generally due to the following:

  • Universal requirement
  • Variation in seasons
  • Hedge against price rising
  • Assortment divergence

Rice futures contract are universally traded on Chicago mercantile exchange (CME) having size of 2,000 hundred weights. Merchants should have a good knowledge about the aspects that effect the rates of rice before investment in rice.


Kibor stands for Karachi Inter Bank Offer Rate. It is issued by specific administrations to all the commercial banks of Pakistan. All banks charge interest to the regulars according to kibor. The kibor is price rises accustomed and banks increase 2 to 3% in kibor and charge the regulars for their turnover.

It was introduced in 2001 by SBP (State bank of Pakistan). Its scope and application was extended in 2014. After conference with the Pakistan Banks Association, SBP has announced kibor as a reference rate for corporate loaning to make interest charges more market driven. All banks had their own interest rates before the introduction of kibor. Kibor is calculated under the accountability of PBA (Pakistan Banks Association), FMA (Financial Markets Association), SBP (State Bank of Pakistan).

Kibor support to keep safe from market threat. It facilitates regulars to pay adjustable interest. Its rate is issued on 11:30 am everyday on SBP, FMA websites.