Investing.com - U.S. coffee prices extended losses from the previous session on Wednesday to re-approach a five-week low hit earlier in the week, amid indications supplies might be on the rise despite uncertainties posed by drought in Brazil.
On the ICE Futures U.S. Exchange, Arabica coffee for July delivery dropped 1.12% to trade at $1.8498 a pound, during U.S. morning hours. Coffee lost 1.22% on Tuesday to settle at $1.8695 a pound.
Prices fell to $1.8275 a pound on Monday, the lowest since April 4, as the market continued to consolidate after a recent rally, which took prices to the highest level since February 2012.
Arabica prices climbed to a 26-month high of $2.1892 a pound on April 23, as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
However, Brazil's exports of unroasted coffee rose 15% this year through April, compared with the same stretch in 2013, as producers looked to take advantage of higher prices.
The exports came almost entirely from stockpiles, since growers started picking Arabica beans only in April.
Brazil is the world's largest producer and exporter of Arabica coffee.
Elsewhere, U.S. sugar for July delivery advanced 0.67% to trade at $0.1796 a pound, the most since March 31. Prices of the sweetener surged 2.95% on Tuesday to settle at $0.1780 a pound, as investors continued to monitor crop and weather conditions in top grower Brazil.
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.
Meanwhile, U.S. cotton for July delivery jumped 1.05% to trade at $0.9189 a pound. The July cotton contract shed 0.41% on Tuesday to end at $0.9093 a pound.
According to the USDA, nearly 30% of the U.S. cotton crop was planted as of last week. The five-year average for this time of year is 34%.