Investing.com - Cotton futures traded at the lowest level since December 2012 on Tuesday, after the U.S. Department of Agriculture said U.S. farmers planted more cotton than expected.
On the ICE Futures Exchange, U.S. cotton for December delivery slumped to a session low of $0.7291 a pound, the weakest level since December 5, 2012, before trimming losses to last trade at $0.7295 during U.S. morning hours, down 0.77%.
The December cotton contract tumbled 1.79% on Monday after the USDA said U.S. farmers planted 11.37 million acres of cotton, up from an estimate of 11.1 million in March and 9.2% higher than the amount planted a year earlier.
Prices of the fiber have been under pressure in recent weeks as improving prospects for crops in the U.S., the world’s biggest exporter, added to signs of ample global supply.
Cotton futures are down 25% from this year’s high of $0.9735 on March 26, meeting the common definition of a bear market.
Meanwhile, U.S. sugar for October delivery declined 0.5% to trade at $0.1796 a pound, the lowest since June 20.
The October contract ended Monday’s session down 1.69% to settle at $0.1801 as the market digested a small delivery against expiry of the July contract, signaling weak near-term demand for the sweetener.
Elsewhere, Arabica coffee for September delivery dropped 0.46% to trade at $1.7378 a pound. The September coffee contract rallied 1.48% on Monday to settle at $1.7510 as traders worried that drought would hurt Brazilian output.
Brazil is the world's largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.