Investing.com - U.S. soft futures were mixed during U.S. morning trade on Monday, with sugar prices coming under pressure after Goldman Sachs cut its 2013 price forecast on the sweetener.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1905 a pound, down 0.75% on the day. The March contract fell by as much as 1.1% earlier in the session to hit a daily low of USD0.1898 a pound.
Sugar prices moved lower after Wall Street investment bank Goldman Sachs cut the sweetener’s price forecast for the next three, six and 12 months, citing ample global supply.
According to the bank, sugar futures will average USD0.1850 a pound in three and six months, down from a previous estimate of USD0.2200 a pound.
Sugar prices will average USD0.1900 a pound in 12 months, according to the bank’s forecast, as a global surplus of the commodity was expected to weigh on prices.
Meanwhile, Arabica coffee for March delivery traded at USD1.5455 a pound, up 1.1% on the day. The March contract rose by as much as 1.5% earlier in the day to hit a session high of USD1.5482 a pound, the strongest level since December 7.
Arabica futures have rallied in recent sessions despite the view that global supplies of the bean are more than ample to meet demand.
Coffee prices have been on an upward trend in recent sessions, as speculators closed out bets on lower prices after Arabica fell nearly 37% last year, the most in 12 years, making it one of the worst performing commodities of 2012.
Goldman Sachs said in a report that it sees “limited further downside to prices”. The bank expects coffee prices to remain “rangebound in the near-term before recovering modestly in 2013”.
Elsewhere, cotton futures for March delivery traded at USD0.7543 a pound, down 0.25% on the day. The March contract held in a tight range between USD0.7534 a pound, the daily low and a session high of USD0.7603 a pound.
The U.S. Department of Agriculture’s closely-watched monthly report on U.S. and global cotton supplies released Friday showed that the U.S. cotton crop will be 1.4% smaller than previously estimated. Analysts expected production to be little changed.
The crop totaled 17.01 million bales, down from the December estimate of 17.26 million. The previous crop totaled 15.57 million bales.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1905 a pound, down 0.75% on the day. The March contract fell by as much as 1.1% earlier in the session to hit a daily low of USD0.1898 a pound.
Sugar prices moved lower after Wall Street investment bank Goldman Sachs cut the sweetener’s price forecast for the next three, six and 12 months, citing ample global supply.
According to the bank, sugar futures will average USD0.1850 a pound in three and six months, down from a previous estimate of USD0.2200 a pound.
Sugar prices will average USD0.1900 a pound in 12 months, according to the bank’s forecast, as a global surplus of the commodity was expected to weigh on prices.
Meanwhile, Arabica coffee for March delivery traded at USD1.5455 a pound, up 1.1% on the day. The March contract rose by as much as 1.5% earlier in the day to hit a session high of USD1.5482 a pound, the strongest level since December 7.
Arabica futures have rallied in recent sessions despite the view that global supplies of the bean are more than ample to meet demand.
Coffee prices have been on an upward trend in recent sessions, as speculators closed out bets on lower prices after Arabica fell nearly 37% last year, the most in 12 years, making it one of the worst performing commodities of 2012.
Goldman Sachs said in a report that it sees “limited further downside to prices”. The bank expects coffee prices to remain “rangebound in the near-term before recovering modestly in 2013”.
Elsewhere, cotton futures for March delivery traded at USD0.7543 a pound, down 0.25% on the day. The March contract held in a tight range between USD0.7534 a pound, the daily low and a session high of USD0.7603 a pound.
The U.S. Department of Agriculture’s closely-watched monthly report on U.S. and global cotton supplies released Friday showed that the U.S. cotton crop will be 1.4% smaller than previously estimated. Analysts expected production to be little changed.
The crop totaled 17.01 million bales, down from the December estimate of 17.26 million. The previous crop totaled 15.57 million bales.