Investing.com - U.S. soft futures were mixed on Wednesday, with sugar and coffee prices dropping from the previous session’s multi-month highs as investors locked in gains from a recent rally.
On the ICE Futures U.S. Exchange, sugar futures for May delivery tumbled 2.65% to trade at $0.1723 a pound during U.S. morning hours.
The May contract surged to $0.1808 a pound on Tuesday, the highest since November 11, before parings gains to end little changed at $0.1768 a pound.
Sugar prices have been well-supported in recent weeks as drought conditions in key sugar-growing regions in Brazil was expected to curb output.
The South American nation had the hottest January ever and the least rain for the period in 20 years, according to agricultural meteorologists.
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, Arabica coffee for May traded fell 0.85% to trade at $1.7493 a pound.
The May contract rallied to $1.8125 a pound on Tuesday, the most since October 4, 2012, before turning modestly lower to settle at $1.7625 a pound, down 0.06%.
Prices of the bean were boosted by the same hot and dry weather conditions that supported sugar. Brazil is the world's largest producer and exporter of Arabica coffee.
Elsewhere, cotton futures for May delivery added 0.45% to trade at $0.8776 a pound. The May contract lost 2.18% on Tuesday to settle at $0.8735 a pound.