Investing.com - U.S. soft futures were mostly higher during U.S. morning hours on Monday, with sugar prices bouncing off the lowest level since August 2010 as investors returned to the market to seek cheap valuations.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1927 a pound, up 0.65% on the day. The March contract rose by as much as 0.9% earlier in the day to hit a session high of USD0.1931 a pound.
On Friday, sugar prices fell to USD0.1866 a pound, the cheapest level since August 12, 2010.
Sugar prices tumbled to a multi-year low on Friday, after Brazil’s top sugar industry group Unica said that sugar output in Brazil’s Center South-region jumped 73% in the second half of October compared to the same period a year earlier, as dry weather helped speed up the harvest.
Output in the region rose to 2.55 million metric tons between October 16 and October 31.
Sentiment on the sweetener has turned negative since hitting a two-month high of USD0.2176 a pound on October 4, dropping almost 12% amid receding concerns over the pace of the harvest in Brazil’s Center South-region.
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 USD1.5215 a pound, jumping 1.6%. The December contract rose by as much as 1.95% earlier in the session to hit a daily high of USD1.5275 a pound.
Front-month prices dropped to USD1.4962 a pound on Friday, the weakest level since June 15.
Coffee futures have been under heavy selling pressure since touching a ten-week high of USD1.8542 a pound on October 3, losing nearly 18% as concerns over the pace of the Brazilian coffee harvest eased.
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 said that an anticipated rebound in Colombia's crop further weighed and added to view that global supplies of the bean are more than ample.
Elsewhere, cotton futures for December delivery traded at USD0.7011 a pound, gaining 0.75%. The December contract rose by as much as 0.85% earlier in the session to hit a daily high of USD0.7015 a pound.
In its Supply & Demand Estimate Report published Friday, the U.S. Department of Agriculture raised its estimate for 2012-13 ending stocks to an all-time high of 80.27 million bales, citing increased output in the U.S. and declining demand in China.
The new forecast is up from 79.11 million last month, and 15% above 2011-12 levels.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1927 a pound, up 0.65% on the day. The March contract rose by as much as 0.9% earlier in the day to hit a session high of USD0.1931 a pound.
On Friday, sugar prices fell to USD0.1866 a pound, the cheapest level since August 12, 2010.
Sugar prices tumbled to a multi-year low on Friday, after Brazil’s top sugar industry group Unica said that sugar output in Brazil’s Center South-region jumped 73% in the second half of October compared to the same period a year earlier, as dry weather helped speed up the harvest.
Output in the region rose to 2.55 million metric tons between October 16 and October 31.
Sentiment on the sweetener has turned negative since hitting a two-month high of USD0.2176 a pound on October 4, dropping almost 12% amid receding concerns over the pace of the harvest in Brazil’s Center South-region.
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 USD1.5215 a pound, jumping 1.6%. The December contract rose by as much as 1.95% earlier in the session to hit a daily high of USD1.5275 a pound.
Front-month prices dropped to USD1.4962 a pound on Friday, the weakest level since June 15.
Coffee futures have been under heavy selling pressure since touching a ten-week high of USD1.8542 a pound on October 3, losing nearly 18% as concerns over the pace of the Brazilian coffee harvest eased.
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 said that an anticipated rebound in Colombia's crop further weighed and added to view that global supplies of the bean are more than ample.
Elsewhere, cotton futures for December delivery traded at USD0.7011 a pound, gaining 0.75%. The December contract rose by as much as 0.85% earlier in the session to hit a daily high of USD0.7015 a pound.
In its Supply & Demand Estimate Report published Friday, the U.S. Department of Agriculture raised its estimate for 2012-13 ending stocks to an all-time high of 80.27 million bales, citing increased output in the U.S. and declining demand in China.
The new forecast is up from 79.11 million last month, and 15% above 2011-12 levels.