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Soft futures mixed; Sugar, coffee steady with Brazil weather in focus

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Investing.com - U.S. soft futures were mixed on Tuesday, with coffee and sugar prices holding steady after updated weather forecasts fuelled concerns over potential crop damage in Brazil.

Brazil is the world's largest producer of both commodities.

On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.1643 a pound, up 0.25% on the day.

The October contract held in between a tight range between USD0.1634 a pound, the daily low and a session high of USD0.1643 a pound.

Sugar prices rose to USD0.1647 a pound on Monday, the strongest level since July 3.

Prices of the sweetener have been well-supported in recent sessions after Brazilian industry group Datagro said rains and cooler weather in the center-south region in Brazil are reducing the crop's potential to yield sugar.

Brazil's center-south region accounts for nearly 90% of Brazil's sugarcane output.

The South American country 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.

Meanwhile, Arabica coffee for September delivery traded at USD1.2485 a pound, down 0.2% on the day.

The September contract rose by as much as 1.1% earlier in the day to hit a session high of USD1.2648 a pound, before turning lower as a round of profit taking kicked in.

Weather forecasting models pointed to cooler, wetter weather across key coffee-growing regions in Brazil during the next few days, potentially disrupting the harvest.

Brazil is the world's largest producer and exporter of Arabica coffee.

Elsewhere, cotton futures for December delivery traded at USD0.8616 a pound, little changed on the day. The December contract traded in a range between USD0.8604 a pound, the daily low and a session high of USD0.8650 a pound, which was the strongest level since July 11.

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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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