Investing.com - U.S. soft futures were broadly lower during U.S. morning hours on Thursday, with sugar prices falling to the lowest level since August 2010 as sentiment on the sweetener remained downbeat amid easing concerns over Brazil’s sugar harvest.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1848 a pound, easing down 0.2% on the day. The March contract fell to a daily low of USD0.1845 a pound earlier in the session, the weakest level since August 12, 2010.
Brazilian state forecaster Conab said Wednesday the country was expected to produce 37.66 million tons of the sweetener by the end of the season, 4.7% more than in the previous marketing year.
The forecast came after Brazil’s top sugar industry group Unica said on Tuesday that sugar output in the country’s Center South-region increased significantly in the final two weeks of November compared to the same period a year earlier.
Total sugar production for the season reached 32.9 million tonnes as of December 1, compared to last year's output of 31.1 million tonnes during the same week.
The industry group added that sugar mills in the region will begin to shut down in greater numbers in the coming weeks as harvest comes to a close.
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.
Sentiment on the sweetener has been downbeat in recent weeks, losing nearly 10% since the beginning of October, as concerns over the pace of the harvest in Brazil’s Center South-region receded.
Meanwhile, Arabica coffee for March delivery traded at USD1.4635 a pound, dipping 0.15% on the day. The March contract fell to a daily low of USD1.4553 a pound earlier in the session, the weakest since November 15.
Coffee market players continued to monitor weather conditions in top producer Brazil, as the bean harvest continues to wind down. Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Market players also noted that a rebound in Colombia's coffee crop further weighed and added to the view that global supplies of the bean are more than ample to meet world demand.
The International Coffee Organization said on December 11 that world coffee production in the current marketing year will rise 8.4% from the previous season to 146 million bags, with Arabica output increasing almost 11%.
The commodity has been under heavy selling pressure in recent months, losing nearly 15% since the beginning of October.
Elsewhere, cotton futures for March delivery traded at USD0.7479 a pound, shedding 0.45%. The March contract traded in a range between USD0.7477 a pound, the daily low and a session high of USD0.7503 a pound.
Cotton futures rallied to a six-week high of USD0.7552 a pound on Wednesday, a day after the U.S. Department of Agriculture cut its estimate for 2012-13 global cotton inventories to 79.64 million bales from 80.27 million forecast.
The agency cited a technical adjustment in Turkey’s data for the downward revision.
Despite the modest decline, the new forecast is still the highest since USDA records began in 1966.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1848 a pound, easing down 0.2% on the day. The March contract fell to a daily low of USD0.1845 a pound earlier in the session, the weakest level since August 12, 2010.
Brazilian state forecaster Conab said Wednesday the country was expected to produce 37.66 million tons of the sweetener by the end of the season, 4.7% more than in the previous marketing year.
The forecast came after Brazil’s top sugar industry group Unica said on Tuesday that sugar output in the country’s Center South-region increased significantly in the final two weeks of November compared to the same period a year earlier.
Total sugar production for the season reached 32.9 million tonnes as of December 1, compared to last year's output of 31.1 million tonnes during the same week.
The industry group added that sugar mills in the region will begin to shut down in greater numbers in the coming weeks as harvest comes to a close.
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.
Sentiment on the sweetener has been downbeat in recent weeks, losing nearly 10% since the beginning of October, as concerns over the pace of the harvest in Brazil’s Center South-region receded.
Meanwhile, Arabica coffee for March delivery traded at USD1.4635 a pound, dipping 0.15% on the day. The March contract fell to a daily low of USD1.4553 a pound earlier in the session, the weakest since November 15.
Coffee market players continued to monitor weather conditions in top producer Brazil, as the bean harvest continues to wind down. Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Market players also noted that a rebound in Colombia's coffee crop further weighed and added to the view that global supplies of the bean are more than ample to meet world demand.
The International Coffee Organization said on December 11 that world coffee production in the current marketing year will rise 8.4% from the previous season to 146 million bags, with Arabica output increasing almost 11%.
The commodity has been under heavy selling pressure in recent months, losing nearly 15% since the beginning of October.
Elsewhere, cotton futures for March delivery traded at USD0.7479 a pound, shedding 0.45%. The March contract traded in a range between USD0.7477 a pound, the daily low and a session high of USD0.7503 a pound.
Cotton futures rallied to a six-week high of USD0.7552 a pound on Wednesday, a day after the U.S. Department of Agriculture cut its estimate for 2012-13 global cotton inventories to 79.64 million bales from 80.27 million forecast.
The agency cited a technical adjustment in Turkey’s data for the downward revision.
Despite the modest decline, the new forecast is still the highest since USDA records began in 1966.