Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Soft futures gain; Coffee climbs to 7-week high

Published 07/16/2013, 07:54 AM
Investing.com - U.S. soft futures were mostly higher on Tuesday, with coffee prices rallying to a seven-week high as market players monitored movements in the Brazilian real.

Brazil is the world's largest producer and exporter of Arabica coffee. When its currency strengthens, farmers tend to ship less beans, as it dampens the value of overseas income at Brazilian coffee exporters when repatriated.

On the ICE Futures U.S. Exchange, Arabica coffee for September delivery traded at USD1.2538 a pound, up 1.8% on the day.

The September contract rose by as much as 2% earlier in the day to hit a session high of USD1.2563 a pound, the strongest level since June 12.

Meanwhile, sugar futures for October delivery traded at USD0.1620 a pound, up 0.3% on the day.

The October contract traded in a range between USD0.1611 a pound, the daily low and a session high of USD0.1623 a pound.

On Monday, sugar futures fell to USD0.1603 a pound, the weakest level since July 2, 2010, as farmers in Brazil started to accelerate harvesting of the nation's sugar crops.

Brazilian industry group Datagro said earlier in the months that the country's main growing region is likely to produce 35.3 million metric tons of sugar in the current season, more than the 34.1 million tons of sugar produced last season

Brazil is the world's largest sugar producer and exporter, with the U.S. Department of Agriculture estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.

Elsewhere, cotton futures for December delivery traded at USD0.8537 a pound, up 0.3% on the day. The December contract traded in a range between USD0.8502 a pound, the daily low and a session high of USD0.8547 a pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.