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Soft futures higher; Sugar climbs 1% on demand signals

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Investing.com - U.S. soft futures were higher on Tuesday, with sugar prices gaining 1% amid signs of increased demand for the sweetener.

On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.1651 a pound, up 1.05%. The October contract settled 0.2% lower at USD0.1634 a pound on Friday.

Prices of the sweetener traded in a range between USD0.1639 a pound, the daily low and a session high of USD0.1654 a pound.

Floor trading on the ICE Futures U.S. Exchange was closed Monday for the Labor Day holiday.

The International Sugar Organization said last week that sugar production will exceed demand by 4.5 million tons in the 2013-14 season that starts in October, down from a surplus of ten million in the preceding season.

Elsewhere, Arabica coffee for December delivery traded at USD1.1720 a pound, up 0.75%. The December contract ended down 1.15% at USD1.1630 a pound on Friday.

Arabica prices traded in a range between USD1.1625 a pound, the session low and a daily high of USD1.1728 a pound.

Prices traded near a four-and-a-half-year low as traders eyed a huge harvest in Brazil. The South American country is the world's largest producer and exporter of Arabica coffee.

Meanwhile, cotton futures for December delivery traded at USD0.8398 a pound, up 0.6%. Prices held in a range between USD0.8357 a pound, the daily low and a session high of USD0.8411 a pound.

The December contract settled 0.3% higher at USD0.8349 a pound on Friday, reversing earlier losses which took prices to a six-week low of USD0.8243 a pound.

Prices have been on a downward trend in recent weeks amid indications of improving global crop prospects.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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