Investing.com - U.S. soft futures were mostly lower during U.S. morning trade on Tuesday, with sugar prices moving away from an eight-week high as investors sold contracts to lock in recent gains.
On the ICE Futures U.S. Exchange, sugar futures for May delivery traded at USD0.1880 a pound, down 0.6% on the day. The May contract fell by as much as 0.75% earlier in the session to hit a daily low of USD0.1879 a pound.
The sweetener jumped to USD0.1904 a pound on Friday, the highest level since January 14.
Sugar prices rallied sharply last week as shipping delays out of top producer Brazil and a move towards higher ethanol production triggered short-covering buying.
The South American country is the world's largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
Meanwhile, Arabica coffee for May delivery traded at USD1.4220 a pound, down 0.9% on the day. The May contract declined by as much as 1% earlier to hit a daily low of USD1.4195 a pound, the weakest level since March 7.
Coffee prices came under pressure as striking coffee growers in Colombia ended an 11-day protest last Friday after winning a government subsidy to offset lower prices for their product on international markets.
Colombia is the world's second largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Elsewhere, cotton futures for May delivery traded at USD0.8649 a pound, down 0.3% on the day. The May contract held in a tight trading range between USD0.8633 a pound, the daily low and a session high of USD0.8681 a pound.
Cotton prices rallied to a ten-month high of USD0.8874 a pound on Friday, after the U.S. Department of Agriculture said world cotton reserves will be lower than forecast a month ago as demand increased in China ,India and Bangladesh.
According to the USDA, global inventories will total 81.74 million bales in the year ending July 31, down from the February estimate of 81.86 million bales.
Global demand was estimated at 107.11 million bales, up from 106.24 million last month.
The agency increased its estimate for projected consumption by top consumer China to 36 million bales from 35.5 million last month.
Cotton prices have rallied nearly 14% since the start of the year on the back of strong demand from top consumer China and concerns over U.S. supplies.
Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting
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.
