Investing.com - U.S. soft futures were mixed on Thursday, with coffee prices moving lower as investors cashed out of the market to lock in gains from the previous session’s 9% rally which took prices to the highest level since March 2012.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery fell to a session low of $1.9693 a pound. Arabica prices last traded at $1.9728 a pound during U.S. morning hours, down 1.25%.
The May coffee contract rallied to $2.0410 a pound on Wednesday, the most since March 2, 2012, before settling up 9.14% at $2.0240.
Prices of the bean rallied 30.4% in February as drought conditions in key coffee-growing regions in Brazil was expected to curb output. Year-to-date, Arabica coffee is up almost 82%.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, sugar futures for May delivery rose to a session high of $0.1840 a pound, the most since November 5. Prices of the sweetener last traded at $0.1834 a pound, up 0.35%.
The May contract jumped 2.76% on Wednesday to settle at $0.1823 a pound, amid speculation dry weather in Brazil will cut this year’s cane crop.
Sugar prices have been well-supported in recent weeks, with prices advancing nearly 12% in February, amid concerns over Brazil’s 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, cotton futures for May delivery inched up 0.4% to trade at $0.8897 a pound. The May contract lost 0.68% on Wednesday to settle at $0.8861 a pound.