Investing.com - U.S. softs futures were higher during early U.S. morning trade on Tuesday, with sugar prices bouncing off Monday’s 20-month low amid easing concerns over a surplus in global supplies, while cotton and coffee prices ticked higher as well.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2043 a pound during early U.S. morning trade, gaining 0.8%.
It earlier rose by as much as 1.35% to trade at a session high of USD0.2061 a pound. Prices fell to USD0.2007 a pound on Monday, the lowest since September 1, 2010.
Sugar prices regained strength after the International Sugar Organization forecast the global sugar surplus to halve to around 3 million tonnes in the 2012-13 marketing season from a surplus of 6.5 million tonnes in the current year.
Despite the day’s rare upward move, technical traders noted that the sugar market remains in a major bear trend. Prices are expected to move even lower in the near-term after breaking below key support levels in recent sessions.
Prices are down approximately 43% since hitting a three-decade high of USD0.3594 in February of last year.
Sugar prices have been under pressure in recent weeks, losing nearly 23% since March 20, as increasing competition for U.S. exports and ample global supplies have been dominating sentiment.
Meanwhile, cotton futures for July delivery traded at USD0.8003 a pound, jumping 1.55%.
It earlier rose by as much as 1.9% to trade at a session high of USD0.8064. Prices fell to as low as USD0.7716 a pound on Friday, the lowest since July 20, 2010.
Cotton’s gains came despite an upbeat planting progress report from the U.S. Department of Agriculture.
Nearly 48% of the U.S. cotton crop was planted as of May 13, up from 36% a week earlier and higher than the five-year average of 39% for this time of year.
In Texas, the top cotton growing state in the U.S., 35% of the cotton crop was planted, improving from 27% a week earlier. The five-year average for the week is 31%.
Cotton prices have been under pressure in recent sessions after the USDA forecast record world cotton supplies in its Supply & Demand Estimate Report published May 10.
The agency hiked its estimate on world 2012-13 cotton ending stocks to a record 73.75 million bales, up over 10% from the 2011-12 level.
The fiber has plunged almost 65% from a record in March 2011 as higher prices prompted farmers to plant more crops and demand in top consumer China slowed.
Elsewhere on the ICE Futures U.S. Exchange, Arabica coffee for July delivery traded at USD1.7935 a pound, gaining 1.05%. It earlier rose by as much as 1.2% to trade at USD1.7957, which was the highest since May 3.
Prices touched USD1.7232 on May 9, the lowest since August 27, 2010.
Coffee prices have been under pressure in recent months, losing nearly 28% since mid-January as traders eyed a huge harvest in top grower Brazil and speculators pushed prices lower.
Brazil is the world's largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
The coffee market, like the sugar market, is in a major downward trend, with potential for further losses based on historical price charts.
Credit Suisse said in a report last week that it expects coffee prices to average USD1.70 a pound during the next three months, “with the main driver being technicals.”
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2043 a pound during early U.S. morning trade, gaining 0.8%.
It earlier rose by as much as 1.35% to trade at a session high of USD0.2061 a pound. Prices fell to USD0.2007 a pound on Monday, the lowest since September 1, 2010.
Sugar prices regained strength after the International Sugar Organization forecast the global sugar surplus to halve to around 3 million tonnes in the 2012-13 marketing season from a surplus of 6.5 million tonnes in the current year.
Despite the day’s rare upward move, technical traders noted that the sugar market remains in a major bear trend. Prices are expected to move even lower in the near-term after breaking below key support levels in recent sessions.
Prices are down approximately 43% since hitting a three-decade high of USD0.3594 in February of last year.
Sugar prices have been under pressure in recent weeks, losing nearly 23% since March 20, as increasing competition for U.S. exports and ample global supplies have been dominating sentiment.
Meanwhile, cotton futures for July delivery traded at USD0.8003 a pound, jumping 1.55%.
It earlier rose by as much as 1.9% to trade at a session high of USD0.8064. Prices fell to as low as USD0.7716 a pound on Friday, the lowest since July 20, 2010.
Cotton’s gains came despite an upbeat planting progress report from the U.S. Department of Agriculture.
Nearly 48% of the U.S. cotton crop was planted as of May 13, up from 36% a week earlier and higher than the five-year average of 39% for this time of year.
In Texas, the top cotton growing state in the U.S., 35% of the cotton crop was planted, improving from 27% a week earlier. The five-year average for the week is 31%.
Cotton prices have been under pressure in recent sessions after the USDA forecast record world cotton supplies in its Supply & Demand Estimate Report published May 10.
The agency hiked its estimate on world 2012-13 cotton ending stocks to a record 73.75 million bales, up over 10% from the 2011-12 level.
The fiber has plunged almost 65% from a record in March 2011 as higher prices prompted farmers to plant more crops and demand in top consumer China slowed.
Elsewhere on the ICE Futures U.S. Exchange, Arabica coffee for July delivery traded at USD1.7935 a pound, gaining 1.05%. It earlier rose by as much as 1.2% to trade at USD1.7957, which was the highest since May 3.
Prices touched USD1.7232 on May 9, the lowest since August 27, 2010.
Coffee prices have been under pressure in recent months, losing nearly 28% since mid-January as traders eyed a huge harvest in top grower Brazil and speculators pushed prices lower.
Brazil is the world's largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
The coffee market, like the sugar market, is in a major downward trend, with potential for further losses based on historical price charts.
Credit Suisse said in a report last week that it expects coffee prices to average USD1.70 a pound during the next three months, “with the main driver being technicals.”