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Softs mixed; Coffee trades at 3-week high on Brazil harvest worries

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Investing.com - U.S. soft futures were mixed on Thursday, with coffee prices trading at a three-week high amid mounting concerns over crop prospects in Brazil, the world's biggest producer of the bean.

On the ICE Futures U.S. Exchange, Arabica coffee for December delivery traded at USD1.2075 a pound, up 0.05%. The December contract ended 3.56% higher at USD1.2080 a pound on Wednesday.

Arabica prices traded in a range between USD1.1990 a pound, the session low and a daily high of USD1.2088 a pound.

Prices soared by the most in eight months on Wednesday to hit USD1.2102 a pound, the strongest level since August 20, amid speculation dry weather in Brazil will damage crops and lower the quality of the harvest.

The South American country is the world's largest producer and exporter of Arabica coffee.

Elsewhere, sugar futures for October delivery traded at USD0.1714 a pound, little changed. The October contract settled 0.06% lower at USD0.1717 a pound on Wednesday.

Prices of the sweetener traded in a range between USD0.1711 a pound, the daily low and a session high of USD0.1718 a pound.

Futures surged to a four-month high of USD0.1732 a pound on Wednesday as lingering concerns over sugar production in Brazil, the world's biggest producer, boosted prices.

Brazil's sugar industry association Unica said on Tuesday that sugar mills in the country's center-south region produced 3.2 million metric tons of sugar in the second half of August, down 3.7% from same period a year ago.

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

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.

Meanwhile, cotton futures for December delivery traded at USD0.8416 a pound, down 0.25%. Prices held in a range between USD0.8387 a pound, the daily low and a session high of USD0.8437.

The December contract settled down 0.15% at USD0.8435 a pound on Wednesday.

Prices have been on an upward trend in recent sessions amid renewed concerns over U.S. crop conditions and as speculation mounted demand will improve from top user China.

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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.

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