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Soft futures; ICE coffee edges lower after Wednesday’s 4% rally

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Investing.com -

Investing.com - Coffee prices edged lower on Thursday, as investors cashed out of the market to lock in gains from the previous session's 4% rally.

On the ICE Futures Exchange, Arabica coffee for July delivery shed 0.71% to trade at $1.7038 a pound during U.S. morning hours.

The July coffee contract surged 3.59% on Wednesday to settle at $1.7160 as traders worried that drought would hurt Brazilian output.

Brazil is the world's largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.

Meanwhile, U.S. sugar for July delivery fell to a session low of $0.1671 a pound, the weakest level since April 17, before coming off the lows to last trade at $0.1672, down 0.65%.

The July contract ended Wednesday's session down 0.94% to settle at 0.1673 a pound.

Prices of the sweetener have been on a downward trend in recent sessions as investors monitored crop and weather conditions in Brazil.

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 dipped 0.45% to trade at $0.8513 a pound. The July cotton contract lost 0.92% on Wednesday to end at $0.8551.

According to the U.S. Department of Agriculture, nearly 89% of the U.S. cotton crop was planted as of June 8, improving from 74% planted in the preceding week.

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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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