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Soft futures higher - Sugar hits 1-week high on short covering

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Investing.com - U.S. soft futures were broadly higher during U.S. morning trade on Monday, with sugar prices moving further off last week's two-and-a-half-year low as investors returned to the market to seek cheap valuations.

On the ICE Futures U.S. Exchange, sugar futures for May delivery traded at USD0.1784 a pound, up 0.65% on the day.

The May contract rose by as much as 0.9% earlier in the session to hit a daily high of USD0.1789 a pound, the strongest level since March 28.

Sugar prices were higher for the third consecutive session as market players closed out bets that prices would fall further after futures moved into oversold territory.

May sugar prices fell to USD0.1747 a pound on April 3, the lowest level since August 2010, amid the view that global supplies are more than ample to meet world demand.

Meanwhile, Arabica coffee for May delivery traded at USD1.4040 a pound, little changed on the day. The May contract rose by as much as 0.5% earlier to hit a daily high of USD1.4088 a pound, the strongest level since March 28.

The May contract fell to a 34-month low of USD1.3207 a pound on March 20, as speculators pushed prices lower amid worries over sufficient global supplies.

Elsewhere, cotton futures for May delivery traded at USD0.8697 a pound, up 0.2% on the day. The May contract fell by as much as 1% earlier in the day to hit a session low of USD0.8653 a pound, the weakest level since March 25.

Cotton prices tumbled nearly 2% on Friday, suggesting that cotton's recent upswing may be losing momentum.

Cotton prices have rallied nearly 17% since the start of the year on the back of strong demand from top consumer China and concerns over U.S. supplies.

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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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