INV: Soft futures - Coffee falls to 4-week low as oversupply worries weigh
Investing.com - U.S. soft futures were mostly lower during U.S. morning trade on Wednesday, with coffee prices falling to a four-week low amid ongoing concerns over ample global supplies.
On the ICE Futures U.S. Exchange, Arabica coffee for March delivery traded at USD1.4347 a pound, down 0.6% on the day.
The March fell by as much as 0.75% earlier in the session to hit a daily low of USD1.4325 a pound, the weakest level since January 4.
Coffee moved down for the third consecutive session, as traders worried over ample global supplies and speculators pushed prices lower.
Meanwhile, sugar futures for March delivery traded at USD0.1857 a pound, up 0.2% on the day. The March contract held in between a range of USD0.1848 a pound, the daily low and a session high of USD0.1859 a pound.
The sweetener fell to a two-year low of USD0.1806 a pound on January 23, amid concerns over a global surplus of the commodity.
Sugar-cane harvesting in Brazil’s center south, the main growing region of the world’s largest producer, will start earlier this year because of a record crop, according to industry group Sucden do Brasil.
The South American country is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.
Elsewhere, cotton futures for March delivery traded at USD0.8133 a pound, down 0.25% on the day. The March contract fell by as much as 0.4% earlier to hit a session low of USD0.8123 a pound.
Prices have been prone to profit-taking in recent sessions after 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.
