Investing.com - U.S. coffee prices rose for the first time in five sessions on Tuesday, as investors returned to the market to seek cheap valuations amid ongoing concerns over crop conditions in Brazil.
On the ICE Futures U.S. Exchange, Arabica coffee for July delivery rose 0.8%, or 1.6 cents, to trade at $2.0280 a pound during U.S. morning hours. Coffee prices plunged 2.83%, or 5.85 cents, on Monday to settle at $2.0115 a pound.
Arabica prices rallied to a 26-month high of $2.1892 a pound on April 23, as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, U.S. sugar for July delivery shed 0.4% to trade at $0.1750 a pound. Prices of the sweetener lost 1.62% on Monday to settle at $0.1756 a pound.
Investors continued to monitor weather and crop conditions in top grower Brazil after the nation’s top cane industry group Unica said last week that output from the country’s main cane region will total 32.5 million tonnes, down 5% from 2013/14, citing a severe drought early in the year.
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, U.S. cotton for July delivery inched up 0.18% to trade at $0.9240 a pound. The July cotton contract slumped 1.09% on Monday to end at $0.9223 a pound.
The U.S. Department of Agriculture said Monday that nearly 13% of the U.S. cotton crop was planted as of April 27, up from 9% in the preceding week. The five-year average for this time of year is 18%.