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Soft futures mixed; sugar falls to 2-week low

Published 05/07/2014, 07:54 AM
Sugar futures hit 2-week low on global supply view
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Investing.com - U.S. sugar prices fell to a two-week low on Wednesday, as investors continued to monitor weather and crop conditions in top grower Brazil.

On the ICE Futures U.S. Exchange, U.S. sugar for July delivery fell to a session low of $0.1711 a pound earlier in the day, the weakest level since April 25.

Sugar last traded at $0.1716 a pound during U.S. morning hours, down 0.23%. Prices of the sweetener lost 1.55% on Tuesday to settle at $0.1720 a pound.

Sugar prices have been under pressure in recent sessions amid indications global supplies of the sweetener might be on the rise despite uncertainties posed by drought in Brazil.

Brazil is the world's largest sugar producer and exporter, with the U.S. Department of Agriculture estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.

Meanwhile, Arabica coffee for July delivery eased up 0.02%, or 0.05 cents, to trade at $2.0258 a pound. Coffee prices fell 1.46%, or 20.5 cents, on Tuesday to settle at $2.0225 a pound.

Arabica prices rallied to a 26-month high of $2.1892 a pound on April 23, as drought conditions in key coffee-growing regions in Brazil was expected to curb output.

Brazil is the world's largest producer and exporter of Arabica coffee.

Elsewhere, U.S. cotton for July delivery shed 0.81% to trade at $0.9398 a pound. The July cotton contract slumped 0.81% on Tuesday to end at $0.9475 a pound.

According to the U.S. Department of Agriculture, nearly 16% of the U.S. cotton crop was planted as of last week, compared to the five-year average of 25% for this time of year.

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