Investing.com - U.S. soft futures were higher on Monday, with coffee and sugar prices rallying sharply as hot and dry conditions in key growing regions in Brazil fuelled concerns over crop prospects.
The South American nation is the biggest grower of both commodities.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery hit a session high of $1.7683 a pound, before trimming gains to trade at $1.7445 a pound during U.S. morning hours, up 3.25%.
Coffee prices ended Friday’s session up 0.03% to settle at $1.6950 a pound.
Prices of the bean hit a 16-month high of $1.7747 a pound on February 20, as drought conditions in coffee-growing regions in Brazil was expected to curb output.
The South American nation had the hottest January ever and the least rain for the period in 20 years, according to agricultural meteorologists.
Brazil is the world's largest producer and exporter of Arabica coffee.
Agricultural financial service provider Rabobank said in a report February 21 that yields and quality for Arabica beans “will be constrained during this season and the next.”
Meanwhile, sugar futures for May delivery climbed to a daily high of $0.1748 a pound, the most since November 22. Sugar prices last traded at $0.1735 a pound, up 1.6%.
The May contract surged 2.28% on Friday to settle at $0.1707 a pound, as the same hot and dry weather conditions that boosted coffee, supported sugar as well.
"The persistent rainfall deficit across much of the center-south of Brazil's cane-growing heartland is driving production concerns for the upcoming crop," Rabobank said in a report.
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.
Elsewhere, cotton futures for May delivery added 0.1% to trade at $0.8845 a pound, the highest since February 14. The May contract picked up 0.8% on Friday to settle at $0.8835 a pound.