Forexpros - U.S. soft futures were mostly lower during early U.S. morning trade on Tuesday, with sugar and coffee prices trading near the lowest level since the end of June on the back of easing concerns over crop conditions in top grower Brazil.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.2061 a pound, adding 0.45%.
The front-month contract was stuck in a narrow trading range of USD0.2050 a pound, the daily low and a session high of USD0.2076 a pound.
On Monday, front-month prices fell to as low as USD0.2036 a pound, the weakest level since June 28.
Sugar prices rallied to a four-month high in mid-July, as fears that heavy rains in Brazil could damage sugarcane crops in the country’s center-south region boosted sentiment on the sweetener.
But the sweetener has lost nearly 14.5% since hitting USD0.2398 a pound on July 20, as beneficial weather conditions improved crop prospects from the region.
Brazil’s Center South-region produces nearly 90% of the nation’s sugar. Brazil is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
Sugar prices were also weighed by forecasts predicting rain in key growing regions in India, easing concerns over crop conditions in the world’s second largest producer.
Meanwhile, Arabica coffee for September delivery traded at USD1.6347 a pound, shedding 0.55%. Earlier in the day, the September contract hit a low of USD1.6343 a pound.
On Monday, front-month prices touched USD1.6297 a pound, the lowest since June 28.
Coffee prices, like sugar, have been under pressure in recent weeks, as receding concerns over the impact of adverse weather conditions on crops in key growing regions in Brazil dampened the appeal of the commodity.
Coffee futures have lost approximately 15% since hitting a four-month high of USD1.9215 a pound on July 11.
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Market participants said that coffee prices remain vulnerable to further losses as hedge funds and large institutional investors liquidate long positions amid concerns over the global macroeconomic outlook.
Elsewhere, cotton futures for October delivery traded at USD0.7220 a pound, jumping 1.25%.
Earlier Tuesday, prices rose to as high as USD0.7252 a pound, after closing at the lowest level since August 3 on Monday.
Cotton prices plunged nearly 6% in the two sessions leading up to Tuesday, after the U.S. Department of Agriculture last week raised its estimate for global cotton stockpiles to fresh record highs, citing weakening global demand.
In its weekly crop progress report published after Monday’s closing bell, the USDA said that nearly 42% of the U.S. cotton crop was in ‘good’ to ‘excellent’ condition as of August 12, up 1% from a week earlier.
In the major producing state of Texas, only 24% of the cotton crop was seen as in ‘good’ or ‘excellent’ health.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.2061 a pound, adding 0.45%.
The front-month contract was stuck in a narrow trading range of USD0.2050 a pound, the daily low and a session high of USD0.2076 a pound.
On Monday, front-month prices fell to as low as USD0.2036 a pound, the weakest level since June 28.
Sugar prices rallied to a four-month high in mid-July, as fears that heavy rains in Brazil could damage sugarcane crops in the country’s center-south region boosted sentiment on the sweetener.
But the sweetener has lost nearly 14.5% since hitting USD0.2398 a pound on July 20, as beneficial weather conditions improved crop prospects from the region.
Brazil’s Center South-region produces nearly 90% of the nation’s sugar. Brazil is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
Sugar prices were also weighed by forecasts predicting rain in key growing regions in India, easing concerns over crop conditions in the world’s second largest producer.
Meanwhile, Arabica coffee for September delivery traded at USD1.6347 a pound, shedding 0.55%. Earlier in the day, the September contract hit a low of USD1.6343 a pound.
On Monday, front-month prices touched USD1.6297 a pound, the lowest since June 28.
Coffee prices, like sugar, have been under pressure in recent weeks, as receding concerns over the impact of adverse weather conditions on crops in key growing regions in Brazil dampened the appeal of the commodity.
Coffee futures have lost approximately 15% since hitting a four-month high of USD1.9215 a pound on July 11.
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Market participants said that coffee prices remain vulnerable to further losses as hedge funds and large institutional investors liquidate long positions amid concerns over the global macroeconomic outlook.
Elsewhere, cotton futures for October delivery traded at USD0.7220 a pound, jumping 1.25%.
Earlier Tuesday, prices rose to as high as USD0.7252 a pound, after closing at the lowest level since August 3 on Monday.
Cotton prices plunged nearly 6% in the two sessions leading up to Tuesday, after the U.S. Department of Agriculture last week raised its estimate for global cotton stockpiles to fresh record highs, citing weakening global demand.
In its weekly crop progress report published after Monday’s closing bell, the USDA said that nearly 42% of the U.S. cotton crop was in ‘good’ to ‘excellent’ condition as of August 12, up 1% from a week earlier.
In the major producing state of Texas, only 24% of the cotton crop was seen as in ‘good’ or ‘excellent’ health.
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