Investing.com - U.S. soft futures were mostly higher during U.S. morning trade on Tuesday, with sugar prices trading below the highest level since early August, though gains were expected to be limited as farmers in Brazil continue to sell the remainder of their crop.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2168 a pound, gaining 1.45%. The March contract rose by as much 1.65% earlier in the session to hit a daily high of USD0.2173 a pound.
Sugar futures rallied to USD0.2176 a pound on October 4, the highest since August 7.
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.
Meanwhile, Arabica coffee for December delivery traded at USD1.6745 a pound, shedding 0.4%. The December contract fell by as much as 0.55% earlier in the day to hit a session low of USD1.6740 a pound.
Coffee futures rallied to a ten-week high of USD1.8542 a pound on October 3, 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.
Elsewhere, cotton futures for December delivery traded at USD0.7248 a pound, adding 0.95%. The December contract rose by as much as 1.1% earlier to hit a daily high of USD0.7253 a pound, the strongest level since October 4.
Market participants attributed the gains to a flurry of short-covering, following a bout of heavy selling earlier in the month which took prices to a 10-week low of USD0.7022 a pound on October 1.
Cotton traders were awaiting the release of the U.S. Department of Agriculture’s weekly crop progress report due out after Tuesday’s closing bell to gauge how ongoing drought conditions have impacted yields and damaged crops.
Last week, the USDA said that nearly 14% of the U.S. cotton crop was harvested as of October 1, 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.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.2168 a pound, gaining 1.45%. The March contract rose by as much 1.65% earlier in the session to hit a daily high of USD0.2173 a pound.
Sugar futures rallied to USD0.2176 a pound on October 4, the highest since August 7.
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.
Meanwhile, Arabica coffee for December delivery traded at USD1.6745 a pound, shedding 0.4%. The December contract fell by as much as 0.55% earlier in the day to hit a session low of USD1.6740 a pound.
Coffee futures rallied to a ten-week high of USD1.8542 a pound on October 3, 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.
Elsewhere, cotton futures for December delivery traded at USD0.7248 a pound, adding 0.95%. The December contract rose by as much as 1.1% earlier to hit a daily high of USD0.7253 a pound, the strongest level since October 4.
Market participants attributed the gains to a flurry of short-covering, following a bout of heavy selling earlier in the month which took prices to a 10-week low of USD0.7022 a pound on October 1.
Cotton traders were awaiting the release of the U.S. Department of Agriculture’s weekly crop progress report due out after Tuesday’s closing bell to gauge how ongoing drought conditions have impacted yields and damaged crops.
Last week, the USDA said that nearly 14% of the U.S. cotton crop was harvested as of October 1, 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.