Investing.com - Cotton futures fell to the lowest level since November 2012 on Tuesday, before turning higher as investors returned to the market to seek cheap valuations.
On the ICE Futures Exchange, U.S. cotton for December delivery slumped to a session low of $0.6987 a pound, the weakest level since November 12, 2012, before turning higher to last trade at $0.7114 during U.S. morning hours, up 1.32%.
The December cotton contract tumbled 2.57% on Monday to end at $0.7021 a pound, as improving prospects for crops in the U.S., the world’s biggest exporter, added to signs of ample global supply.
The U.S. Department of Agriculture said on June 30 that U.S. farmers planted 11.37 million acres of cotton, up from an estimate of 11.1 million in March and 9.2% higher than the amount planted a year earlier.
Cotton futures are down nearly 27% from this year’s high of $0.9735 on March 26, meeting the common definition of a bear market.
Meanwhile, sugar for October delivery declined 0.34% to trade at $0.1748 a pound. The October contract ended Monday’s session down 1.68% to settle at $0.1751, as investors focused on the cane harvest in top producer and exporter Brazil.
Elsewhere, Arabica coffee for September delivery eased up 0.06% to trade at $1.7158 a pound. The September coffee contract declined 0.41% on Monday to settle at $1.7110 as market players assessed the impact of drought on crops in top producer Brazil.
Brazil is the world's largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.