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Soft futures advance; Coffee trades near 1-month high

Published 07/09/2013, 07:58 AM
Investing.com - U.S. soft futures were mostly higher on Tuesday, with coffee prices trading close to a one-month high amid speculation coffee exporters in South and Central America were withholding supplies until prices recover.

On the ICE Futures U.S. Exchange, Arabica coffee for September delivery traded at USD1.2395 a pound, up 0.8% on the day.

The September contract rose by as much as 1% earlier in the day to hit a session high of USD1.2418 a pound, just below a one-month high of USD1.2477 a pound.

Prices have been well-supported in recent sessions amid speculation prices fell too far too fast.
 
Coffee prices fell to a three-year low of USD1.1717 a pound on June 20, as traders eyed a huge harvest in top grower Brazil.

Meanwhile, sugar futures for October delivery traded at USD0.1638 a pound, up 0.5% on the day. The October contract traded in a range between USD0.1628 a pound, the daily low and a session high of USD0.1640 a pound.

Sugar traders returned to the market to seek cheap valuations after prices fell to a three-week low of USD0.1623 a pound on Monday.

Gains were expected to remain limited as farmers in Brazil started to accelerate harvesting of the nation's sugar crops.

Brazilian industry group Datagro said last week that the country's main growing region is likely to produce 35.3 million metric tons of sugar in the current season, more than the 34.1 million tons of sugar produced last season

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.

Elsewhere, cotton futures for December delivery traded at USD0.8531 a pound, little changed on the day. The December contract traded in a range between USD0.8509 a pound, the daily low and a session high of USD0.8555 a pound.

Prices of the fiber have been on a downward trend in recent sessions amid mounting concerns over a slowdown in demand from top consumer China.

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