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Soft futures mixed - Sugar trades at lowest since August 2010

Published 05/16/2013, 07:26 AM
RWD
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Investing.com - U.S. soft futures were mixed during U.S. morning trade on Thursday, with sugar prices trading at the lowest level since August 2010 as farmers in Brazil started to accelerate harvesting of the nation's sugar crops.

On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.1691 a pound, down 0.2% on the day.

The July contract fell by as much as 0.2% earlier in the session to hit a daily low of USD0.1691 a pound, the weakest level since August 9, 2010.

Farmers in Brazil's center-south region, which accounts for about 90% of the country's production, are forecast to harvest a record 589.6 million metric tons of sugar cane in the 2013-14 season, which began April 1, according to Unica, Brazil's sugar industry association.

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 traded at USD1.4062 a pound, flat on the day. The July contract was stuck in a trading range between USD1.4050 a pound, the daily low and a session high of USD1.4153 a pound.

Coffee futures fell sharply on Wednesday to hit a one-week low of USD1.4007 a pound as a broadly stronger U.S. dollar weighed on the commodities complex.

Elsewhere, cotton futures for July delivery traded at USD0.8583 a pound, down 0.7% on the day. The May contract fell by as much as 0.8% earlier in the day to hit a session low of USD0.8574 a pound.

Market players continued to monitor U.S. planting prospects. The U.S. Department of Agriculture said Monday that nearly 23% of the U.S. cotton crop was planted as of last week, up from 17% in the preceding week.

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