Soft futures decline; Coffee falls to 2-week low
Investing.com
Published May 20, 2013 07:39AM ET
On the ICE Futures U.S. Exchange, Arabica coffee for July delivery traded at USD1.3628 a pound, down 0.5% on the day.
The July contract fell by as much as 0.6% earlier in the day to hit a session low of USD1.3613 a pound, the weakest level since May 2.
Coffee futures have been under heavy selling pressure in recent sessions as traders worried over ample global supplies and speculators pushed prices lower.
Meanwhile, sugar futures for July delivery traded at USD0.1690 a pound, little changed on the day. The July contract held in a tight range between USD0.1689 a pound, the daily low and a session high of USD0.1700 a pound.
Sugar prices fell to the weakest level since August 2010 last week as farmers in Brazil started to accelerate harvesting of the nation's sugar crops.
Sugar growers in Brazil's center-south region, which accounts for about 90% of the country's production, are forecast to harvest a record 589.6 million metric tons of sugar cane in the 2013-14 season, according to Unica, Brazil's sugar industry association.
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 July delivery traded at USD0.8632 a pound, down 0.1% on the day. The May contract traded in a range between USD0.8623 a pound, the session low and a daily high of USD0.8690 a pound.
Market players continued to monitor U.S. planting prospects. According to the U.S. Department of Agriculture, nearly 23% of the U.S. cotton crop was planted as of last week, up from 17% in the preceding week.
Later in the day, the USDA will update its planting progress for the current week.
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Written By: Investing.com
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