Investing.com - U.S. soft futures were mostly higher on Wednesday, with coffee prices rallying to the highest level since October 2012 as hot and dry conditions in key coffee-growing regions in Brazil fuelled concerns over crop prospects.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery hit a session high of $1.6025 a pound, the most since October 30, 2012.
The May coffee contract last traded at $1.5850 a pound during U.S. morning hours, up 2.3%. Coffee prices surged 8.82% on Tuesday to settle $1.5485 a pound after
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 producer and exporter of Arabica coffee.
Meanwhile, sugar futures for March delivery rose to a daily high of $0.1638 a pound, the most since January 2, before trimming gains to trade at $0.1634 a pound, up 0.75%.
The March contract rallied 3.39% on Tuesday to settle at $0.1616 a pound.
Sugar prices rallied as the same hot and dry weather conditions that boosted coffee, supported sugar as well.
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 March delivery traded at $0.8783 a pound, down 0.1%.The March contract settled 0.41% higher on Tuesday to end at $0.8791 a pound.