Investing.com - U.S. soft futures regained strength on Tuesday, with coffee prices rebounding from the previous session’s 34-month low as investors returned to the market to seek cheap valuations.
Farm commodities came under heavy selling pressure on Monday, as worries over a controversial bailout deal for Cyprus saw investors shun riskier assets, instead opting for the relative safety of the U.S. dollar.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery traded at USD1.3515 a pound, up 0.7% on the day. The May contract rose by as much as 1% earlier in the day to hit a daily high of USD1.3540 a pound.
The May contract fell 2.3% on Monday to hit USD1.3410 a pound, the lowest level since June 2010.
Coffee prices have been under heavy selling pressure in recent weeks, losing nearly 8.5% since hitting a one-month high of USD1.4747 a pound on March 5, as speculators pushed prices lower amid worries over sufficient global supplies.
The International Coffee Organization said last month that coffee output in Brazil and Colombia will help make up for crop losses in Central America.
Brazil is the world's largest producer and exporter of Arabica coffee, while Colombia is the world's second largest. Arabica is grown mainly in Latin America and brewed by specialty companies.
Meanwhile, sugar futures for May delivery traded at USD0.1834 a pound, up 0.45% on the day. The May contract held in a trading range between USD0.1834 a pound, the daily low and a session high of USD0.1841 a pound.
Prices dropped almost 3% on Monday as traders became progressively nervous about recent gains amid the view that global supplies are more than ample to meet world demand.
Sugar prices rose to a seven-week high of USD0.1911 a pound on Friday,
The sweetener has been on a recent uptrend as shipping delays out of top producer Brazil and a move towards higher ethanol production triggered short-covering buying.
The South American country is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
Elsewhere, cotton futures for May delivery traded at USD0.9089 a pound, little changed on the day. The May contract was stuck in a range between USD0.9052 a pound, the daily low and a session high of USD0.9141 a pound.
Cotton prices have been well-supported in recent months, rallying nearly 17% since the start of the year on the back of strong demand from top consumer China and concerns over U.S. supplies.
Cotton futures jumped to USD0.9384 a pound on Friday, the highest level since March 30.
Farm commodities came under heavy selling pressure on Monday, as worries over a controversial bailout deal for Cyprus saw investors shun riskier assets, instead opting for the relative safety of the U.S. dollar.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery traded at USD1.3515 a pound, up 0.7% on the day. The May contract rose by as much as 1% earlier in the day to hit a daily high of USD1.3540 a pound.
The May contract fell 2.3% on Monday to hit USD1.3410 a pound, the lowest level since June 2010.
Coffee prices have been under heavy selling pressure in recent weeks, losing nearly 8.5% since hitting a one-month high of USD1.4747 a pound on March 5, as speculators pushed prices lower amid worries over sufficient global supplies.
The International Coffee Organization said last month that coffee output in Brazil and Colombia will help make up for crop losses in Central America.
Brazil is the world's largest producer and exporter of Arabica coffee, while Colombia is the world's second largest. Arabica is grown mainly in Latin America and brewed by specialty companies.
Meanwhile, sugar futures for May delivery traded at USD0.1834 a pound, up 0.45% on the day. The May contract held in a trading range between USD0.1834 a pound, the daily low and a session high of USD0.1841 a pound.
Prices dropped almost 3% on Monday as traders became progressively nervous about recent gains amid the view that global supplies are more than ample to meet world demand.
Sugar prices rose to a seven-week high of USD0.1911 a pound on Friday,
The sweetener has been on a recent uptrend as shipping delays out of top producer Brazil and a move towards higher ethanol production triggered short-covering buying.
The South American country is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
Elsewhere, cotton futures for May delivery traded at USD0.9089 a pound, little changed on the day. The May contract was stuck in a range between USD0.9052 a pound, the daily low and a session high of USD0.9141 a pound.
Cotton prices have been well-supported in recent months, rallying nearly 17% since the start of the year on the back of strong demand from top consumer China and concerns over U.S. supplies.
Cotton futures jumped to USD0.9384 a pound on Friday, the highest level since March 30.