Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

Soft futures - Sugar, coffee decline as ample supplies weigh

Published Mar 13, 2013 08:27AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio - U.S. soft futures were mostly lower during U.S. morning trade on Wednesday, with sugar and coffee prices coming under pressure for a second day amid ongoing concerns over ample global supplies.

On the ICE Futures U.S. Exchange, sugar futures for May delivery traded at USD0.1869 a pound, down 0.6% on the day. The May contract fell by as much as 0.85% earlier in the session to hit a daily low of USD0.1864 a pound.

Prices continued to consolidate below last week’s seven-week high of USD0.1904 a pound as traders became progressively nervous about recent gains amid the view that global supplies are more than ample to meet world demand.

Sugar prices rallied sharply last week as shipping delays out of top producer Brazil and a move towards higher ethanol production triggered short-covering buying.

The South American country is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.

Meanwhile, Arabica coffee for May delivery traded at USD1.4193 a pound, down 0.25% on the day. The May contract declined by as much as 0.4% earlier to hit a daily low of USD1.4168 a pound, the weakest level since March 7.

Coffee prices came under pressure for a third day as speculators pushed prices lower amid worries over sufficient global supplies.

The International Coffee Organization said last month that coffee output in Brazil and Colombia will help make up for crop losses in Central America.

Brazil is the world's largest producer and exporter of Arabica coffee, while Colombia is the world's second largest.  Arabica is grown mainly in Latin America and brewed by specialty companies.

Elsewhere, cotton futures for May delivery traded at USD0.8758 a pound, up 0.3% on the day. The May contract held in a tight trading range between USD0.8722 a pound, the daily low and a session high of USD0.8760 a pound.

Cotton prices rallied to a ten-month high of USD0.8874 a pound last Friday, after the U.S. Department of Agriculture said world cotton reserves will be lower than forecast a month ago as demand increased in China ,India and Bangladesh.

According to the USDA, global inventories will total 81.74 million bales in the year ending July 31, down from the February estimate of 81.86 million bales.

Global demand was estimated at 107.11 million bales, up from 106.24 million last month.

The agency increased its estimate for projected consumption by top consumer China to 36 million bales from 35.5 million last month.

Cotton prices have rallied nearly 14% since the start of the year on the back of strong demand from top consumer China and concerns over U.S. supplies.

Soft futures - Sugar, coffee decline as ample supplies weigh

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email