Investing.com - U.S. soft futures were mixed during U.S. morning trade on Tuesday, with cotton prices re-approaching last week’s eight-month high on the back of an improved demand outlook for the fiber. On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.8221 a pound, up 1.4% on the day. The March contract rose by as much as 1.7% earlier in the session to hit a daily high of USD0.8248 a pound. Cotton futures rallied to an eight-month high of USD0.8394 a pound on January 24, amid indications of strong demand from top consumer China and concerns over U.S. supplies. Sentiment on the fiber improved after U.K.-based industry group Cotlook last week cut its forecast for a global cotton surplus by 2.4%, citing increasing demand from South Asian countries. Global cotton supplies will outpace demand by 3.53 million metric tons in the current marketing year, down from a December forecast of 3.62 million. The research company boosted its forecast for global consumption by 1.2% to 22.5 million tons from last month. Meanwhile, sugar futures for March delivery traded at USD0.1864 a pound, down 0.75% on the day. The March contract fell by as much as 0.9% earlier in the session to hit a daily low of USD0.1861 a pound. Sugar prices rallied nearly 2% on Monday, as market players closed out bets that prices would fall further after futures moved into oversold territory. The March contract fell to USD0.1806 a pound on January 23, the weakest level since August 12, 2010. Sugar futures prices have been under heavy selling pressure in recent months as sentiment on the sweetener was dampened amid the view that global supplies are more than ample to meet world demand. Wall Street investment bank Goldman Sachs cut its 2013 price forecast on the sweetener earlier in the month, citing ample global supplies. According to the bank, sugar futures will average USD0.1850 a pound in six months, down from a previous estimate of USD0.2200 a pound. Elsewhere, Arabica coffee for March delivery traded at USD1.4925 a pound, easing down 0.15%. The March contract held in a tight trading range between USD1.4907 a pound, the daily low and a session high of USD1.4988 a pound. Coffee futures slumped to a three-week low of USD1.4617 a pound on January 24.

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