Investing.com - U.S. soft futures were mixed on Wednesday, with sugar prices re-approaching a four-month high amid speculation dry weather in Brazil will cut this year’s cane crop.
On the ICE Futures U.S. Exchange, sugar futures for May delivery rose to a session high of $0.1800 a pound, before trimming gains to trade at $0.1796 during U.S. morning hours, up 1.15%.
The May contract fell 0.34% on Tuesday to settle at $0.1774 a pound.
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.
Meanwhile, Arabica coffee for May delivery was flat to trade $1.8500 a pound.
Prices of the bean lost 4.14% on Tuesday to settle at $1.8545 a pound, as investors cashed out of the market to lock in gains from the previous session’s 7% rally which took prices to the highest level since March 2012.
The May coffee contract rallied to $1.9760 a pound on Monday, the most since March 6, 2012, before settling up 7.29% at $1.9345.
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 41%.
Brazil is the world's largest producer and exporter of Arabica coffee.
Elsewhere, cotton futures for May delivery rose to a session high of $0.8955 a pound, the highest since February 25, before turning lower to trade at $0.8878 a pound, down 0.5%.
The May contract rallied 1.01% on Tuesday to settle at $0.8922 a pound, as frigid temperature was expected to return across parts of the U.S. Midwest in the coming days, fueling concerns over crop prospects.