Investing.com - Cotton futures fell to the lowest level in 17 months on Thursday, as rains across key growing regions in the U.S. added to expectations of a bumper U.S. cotton crop.
On the ICE Futures Exchange, U.S. cotton for December delivery slumped to a session low of $0.7488 a pound, the weakest level since January 11, 2013, before trimming losses to last trade at $0.7493 during U.S. morning hours, down 0.45%.
The December cotton contract lost 1.61% on Wednesday to settle at $0.7526.
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 23% 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 0.11% to trade at $0.1862 a pound.
The October contract ended Wednesday’s session down 0.43% to settle at $0.1861 as market players continued to assess the outlook for Brazilian supplies.
Brazil’s leading sugar industry group Unica said on Wednesday that the country’s main center-south cane crop produced 2.33 million tonnes of sugar in the first half of June, on the high end of market expectations and up from 2.03 million tonnes in late May.
The South American nation 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, Arabica coffee for September delivery dropped 1.03% to trade at $1.7988 a pound. The September coffee contract rallied 3.29% on Wednesday to settle at $1.8205 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.