Investing.com - U.S. soft futures were broadly higher during U.S. morning trade on Tuesday, with coffee and sugar prices rallying on the back of concerns that rain would return to key growing regions in Brazil and disrupt harvesting again.
Brazil is the world’s largest producer of both commodities.
On the ICE Futures U.S. Exchange, Arabica coffee for December delivery traded at USD1.8270 a pound, jumping 2.7%. It earlier rose by as much as 3% to hit a session high of USD1.8335 a pound, the strongest level since September 17.
Coffee prices settled at the highest level since late-July on Monday, boosted by speculation adverse weather conditions will return to key coffee-growing regions in Brazil and disrupt the pace of harvest.
The Brazilian Arabica harvest is now in its final stages.
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Some technical buying also contributed to gains, after prices broke above a key resistance level, triggering fresh buy orders amid bullish chart signals.
Meanwhile, sugar futures for March delivery traded at USD0.2125 a pound, gaining 0.85%. The March contract rose by as much as 1.3% earlier to hit a session high of USD0.2136 a pound, the strongest level since August 8.
Sentiment on the sweetener has improved since prices fell to a two-year low of USD0.1881 a pound on September 6, as market players speculated that rain would return to Brazil’s Center South-region and disrupt harvesting again.
Brazil’s Center South-region produces nearly 90% of the nation’s sugar. 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.
Some short covering also aided gains, after Monday’s 2.5% rally prompted traders to return to the market and close out bets on lower prices.
Elsewhere, cotton futures for December delivery traded at USD0.7110 a pound, easing up 0.1%. The December contract was stuck in a tight trading range of USD0.7075 a pound, the daily low and a session high of USD0.7128 a pound.
Prices fell to a 10-week low of USD0.7014 a pound on Monday.
The U.S. Department of Agriculture’s weekly crop progress report released after Monday’s closing bell showed that approximately 14% of the U.S. cotton crop was harvested as of last week, up from 10% in the preceding week.
Nearly 42% of the U.S. cotton crop was in ‘good’ to ‘excellent’ condition, compared to 29% recorded in the same week a year earlier.
Brazil is the world’s largest producer of both commodities.
On the ICE Futures U.S. Exchange, Arabica coffee for December delivery traded at USD1.8270 a pound, jumping 2.7%. It earlier rose by as much as 3% to hit a session high of USD1.8335 a pound, the strongest level since September 17.
Coffee prices settled at the highest level since late-July on Monday, boosted by speculation adverse weather conditions will return to key coffee-growing regions in Brazil and disrupt the pace of harvest.
The Brazilian Arabica harvest is now in its final stages.
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Some technical buying also contributed to gains, after prices broke above a key resistance level, triggering fresh buy orders amid bullish chart signals.
Meanwhile, sugar futures for March delivery traded at USD0.2125 a pound, gaining 0.85%. The March contract rose by as much as 1.3% earlier to hit a session high of USD0.2136 a pound, the strongest level since August 8.
Sentiment on the sweetener has improved since prices fell to a two-year low of USD0.1881 a pound on September 6, as market players speculated that rain would return to Brazil’s Center South-region and disrupt harvesting again.
Brazil’s Center South-region produces nearly 90% of the nation’s sugar. 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.
Some short covering also aided gains, after Monday’s 2.5% rally prompted traders to return to the market and close out bets on lower prices.
Elsewhere, cotton futures for December delivery traded at USD0.7110 a pound, easing up 0.1%. The December contract was stuck in a tight trading range of USD0.7075 a pound, the daily low and a session high of USD0.7128 a pound.
Prices fell to a 10-week low of USD0.7014 a pound on Monday.
The U.S. Department of Agriculture’s weekly crop progress report released after Monday’s closing bell showed that approximately 14% of the U.S. cotton crop was harvested as of last week, up from 10% in the preceding week.
Nearly 42% of the U.S. cotton crop was in ‘good’ to ‘excellent’ condition, compared to 29% recorded in the same week a year earlier.