Investing.com - U.S. soft futures were mixed on Tuesday, with coffee prices moving lower as investors cashed out of the market to lock in gains from the previous session’s 7% rally which took prices to the highest level since March 2012.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery fell to a session low of $1.9055 a pound. Arabica prices last traded at $1.9323 a pound during U.S. morning hours, down 2.25%.
The May coffee contract rallied to $1.9760 a pound on Monday, the most since March 6, 2012, before settling up 7.29% at $1.9345.
Prices of the bean rallied 30.4% in February as drought conditions in key coffee-growing regions in Brazil was expected to curb output. Year-to-date, Arabica coffee is up almost 43%.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, sugar futures for May delivery declined 0.55% to trade at $0.1772 a pound. The May contract rose 0.79% on Monday to settle at $0.1780 a pound.
Sugar prices advanced 11.7% in February amid speculation dry weather in Brazil will cut this year’s cane crop.
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 May delivery inched up 0.35% to trade at $0.8864 a pound, the highest since February 25.
The May contract rallied 1.37% on Monday to settle at $0.8833 a pound, as frigid temperature was expected to return across parts of the U.S. Midwest in the coming days, fueling concerns over crop prospects.