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Soft futures mixed - Coffee extends losses on Brazil crop prospects

Published 04/09/2013, 07:49 AM
Updated 04/09/2013, 07:49 AM

Investing.com - U.S. soft futures were mixed to lower during U.S. morning trade on Tuesday, with coffee prices extending heavy losses from the previous session amid expectations for a bumper crop in Brazil.

On the ICE Futures U.S. Exchange, Arabica coffee for May delivery traded at USD1.3600 a pound, down 0.1% on the day. The May contract fell by as much as 0.5% earlier in the session to hit a daily low of USD1.3568 a pound.

Coffee futures plunged more than 3% on Monday to hit a two-week low of USD1.3520 a pound, as farmers in Brazil began harvesting the coffee crop.

Brazil is the world's largest producer and exporter of Arabica coffee.

The May contract fell to a 34-month low of USD1.3207 a pound on March 20, as speculators pushed prices lower amid worries over sufficient global supplies.

Meanwhile, sugar futures for May delivery traded at USD0.1768 a pound, down 0.1% on the day. The May contract fell by as much as 0.4% earlier in the session to hit a daily low of USD0.1761 a pound.

Sugar futures rallied to a two-week high of USD0.1788 a pound on Monday, before turning lower as momentum from a short covering rally faded.

May sugar prices fell to USD0.1747 a pound on April 3, the lowest level since August 2010, amid the view that global supplies are more than ample to meet world demand.

Elsewhere, cotton futures for May delivery traded at USD0.8570 a pound, up 0.4% on the day. The May contract fell by as much as 0.3% earlier in the day to hit a session low of USD0.8517 a pound, the weakest level since March 4.

Cotton prices have been under heavy selling pressure in recent sessions, suggesting that cotton's recent upswing may be losing momentum.

Cotton prices rallied to an 11-month high of USD0.9384 a pound on March 15 on the back of strong demand from top consumer China and concerns over U.S. supplies.

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