Investing.com - U.S. sugar and coffee futures were higher during early U.S. morning trade on Wednesday, with sugar prices bouncing off a 20-month low, while cotton prices were largely unchanged as traders awaited Thursday’s U.S. government report on world supply and demand estimates.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2048 a pound during early U.S. morning trade, gaining 0.8%.
It earlier rose by as much as 0.95% to trade at a session high of USD0.2054 a pound. Prices fell to USD0.2013 a pound on Tuesday, the lowest since September 1, 2010.
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, Arabica coffee for July delivery traded at USD1.7595 a pound, adding 0.25%.
It earlier rose by as much as 0.4% to trade at a session high of USD1.7655. Prices touched USD1.7367 on Monday, the lowest since October 8, 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.
The South American nation’s government crop supply agency Conab will make a new estimate for the crop on Thursday.
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 Tuesday that it expects coffee prices to average USD1.70 a pound during the next three months, “with the main driver being technicals.”
Elsewhere on the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD0.8613 a pound, easing down 0.05%.
The July contract traded in between a range of USD0.8673 a pound, the daily high and a session low of USD0.8609. Prices fell to as low as USD0.8606 on Tuesday, the lowest since December 19, 2011.
Cotton traders were looking towards the USDA’s Supply and Demand Estimates Report for May, scheduled for release on Thursday, May 10.
The report will show the first estimate of market conditions in the coming 2012-13 marketing season, which begins in August 2012 and ends in July 2013.
Cotton prices plunged to the lowest level since mid-December on Tuesday, as farm commodities came under pressure from broader market risk aversion and a stronger U.S. dollar, amid concerns over political uncertainty in Greece.
Cotton, as an industrial commodity, is more affected by macroeconomic jitters than many other crops.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 80.09.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.2048 a pound during early U.S. morning trade, gaining 0.8%.
It earlier rose by as much as 0.95% to trade at a session high of USD0.2054 a pound. Prices fell to USD0.2013 a pound on Tuesday, the lowest since September 1, 2010.
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, Arabica coffee for July delivery traded at USD1.7595 a pound, adding 0.25%.
It earlier rose by as much as 0.4% to trade at a session high of USD1.7655. Prices touched USD1.7367 on Monday, the lowest since October 8, 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.
The South American nation’s government crop supply agency Conab will make a new estimate for the crop on Thursday.
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 Tuesday that it expects coffee prices to average USD1.70 a pound during the next three months, “with the main driver being technicals.”
Elsewhere on the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD0.8613 a pound, easing down 0.05%.
The July contract traded in between a range of USD0.8673 a pound, the daily high and a session low of USD0.8609. Prices fell to as low as USD0.8606 on Tuesday, the lowest since December 19, 2011.
Cotton traders were looking towards the USDA’s Supply and Demand Estimates Report for May, scheduled for release on Thursday, May 10.
The report will show the first estimate of market conditions in the coming 2012-13 marketing season, which begins in August 2012 and ends in July 2013.
Cotton prices plunged to the lowest level since mid-December on Tuesday, as farm commodities came under pressure from broader market risk aversion and a stronger U.S. dollar, amid concerns over political uncertainty in Greece.
Cotton, as an industrial commodity, is more affected by macroeconomic jitters than many other crops.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 80.09.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.