Investing.com - U.S. coffee prices held steady on Tuesday, as investors continued to monitor weather and crop conditions in top grower Brazil.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery held in a range between $1.7473 a pound and $1.7725 a pound. Arabica last traded at $1.7660 a pound during U.S. morning hours, up 0.4%, or 0.7 cents.
Coffee prices rallied 3.07%, or 5.25 cents on Monday to settle at $1.7640 a pound.
The May Arabica contract plunged 13.6% last week after weather forecasts predicted much-needed rainfall in Brazil’s main coffee-growing regions.
Arabica prices hit a two-year high of $2.0975 a pound on March 12 as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, U.S. sugar futures for May delivery declined 0.36% to trade at $0.1678 a pound. The May sugar contract eased up 0.06% to settle at $0.1684 a pound on Monday.
Sugar prices weakened as rains in Brazil raised expectations that drought-driven crop losses may not be as heavy as feared.
Sugar rallied to a four-month high of $0.1846 a pound on March 6, amid speculation dry weather in Brazil will cut this year’s cane crop.
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, U.S. cotton futures for May delivery dipped 0.4% to trade at $0.9029 a pound.
The May cotton contract rose to a one-year high of $0.9375 a pound on Monday, before erasing gains to settle 2.87% lower at $0.9063 a pound.
Prices of the fiber have been well-supported in recent weeks over tightening nearby supplies in the U.S., the world's top exporter.