Investing.com - U.S. soft futures were higher on Monday, with coffee prices moving further off last week's four-year low amid speculation Brazil's government was planning to purchase beans in an effort to raise prices.
On the ICE Futures U.S. Exchange, Arabica coffee for September delivery traded at USD1.1888 a pound, up 0.6%. Prices rose by as much as 0.75% earlier to hit a session high of USD1.1915 a pound.
The September contract settled up 2.3% at USD1.1825 a pound on Friday after Brazil's Agriculture Ministry said it will announce fresh measures to combat low prices as soon as Monday.
Market players speculated some of those measures could include buying coffee directly from producers in order to remove excess supply from the market and combat falling prices.
Coffee prices slumped to a four-year low of USD1.1547 a pound on August 1.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, sugar futures for October delivery traded at USD0.1680 a pound, up 0.3%. Prices of the sweetener held in a tight range between USD0.1676 a pound, the daily low and a session high of USD0.1683 a pound.
The October contract settled down 0.25% on Friday at USD0.1679 a pound as a round of technical selling kicked in after prices failed to close above the key USD0.1700-level late last week.
Prices of the sweetener have been well-supported in recent sessions after Brazilian industry group Datagro said freezing temperatures in part of Brazil's Center South-region caused significant losses to crops.
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.
Elsewhere, cotton futures for December delivery traded at USD0.8525 a pound, up 0.35%. The December contract traded in a range between USD0.8497 a pound, the daily low and a session high of USD0.8568 a pound.
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