Investing.com - U.S. soft futures were mostly higher during U.S. morning trade on Wednesday, with sugar prices bouncing off the lowest level in nearly a month as investors returned to the market to look for bargains.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1875 a pound, up 0.75% on the day. The March contract rose by as much as 0.8% earlier to hit a session high of USD18.77 a pound.
Sugar futures fell to USD0.1861 a pound Tuesday, the cheapest level since December 13.
Prices of the sweetener found support after futures moved into oversold territory, which led to some bargain buying.
Sugar futures have lost nearly 5% since rising to a four-week high of USD0.1974 a pound on January 3.
Meanwhile, Arabica coffee for March delivery traded at USD1.4795 a pound, up 0.9% on the day. The March contract rose by as much as 1% earlier in the day to hit a session high of USD1.4807 a pound.
Arabica futures rallied to a three-week high of USD1.5182 a pound on January 3, despite the view that global supplies of the bean are more than ample to meet demand.
Colombia's National Federation of Coffee Growers, or Fedecafe, said earlier in the week that coffee production rose to 904,000 60-kilogram bags in December, a 23% increase from 735,000 bags in December 2011.
Coffee prices have been on an upward trend in recent sessions, as speculators closed out bets on lower prices after Arabica fell nearly 37% last year, the most in 12 years, making it one of the worst performing commodities of 2012.
Elsewhere, cotton futures for March delivery traded at USD0.7531 a pound, up 0.25% on the day. The March contract held in a tight range between USD0.7491 a pound, the daily low and a session high of USD0.7548 a pound.
Cotton futures fell to a three-week low on January 4 after China's National Development and Reform Commission said it planned to release cotton in its state reserves to meet demand from the domestic textile industry.
However, the NDRC didn't give any details as to how much cotton would be released, or when.
Releasing cotton from its reserves could mean fewer imports and less demand for U.S. cotton. China is both the world's largest producer and consumer of the fiber.
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