INV: Soft futures mixed; coffee rises to highest since October 2012
Investing.com - U.S. soft futures were mixed on Monday, with coffee prices rising to the highest level since October 2012 as hot and dry conditions in key growing regions in Brazil underlined concerns over crop prospects.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery rose to a session high of $1.8178 a pound, the most since October 4, 2012.
Arabica prices last traded at $1.8115 a pound during U.S. morning hours, up 0.45%. The May coffee contract rose 0.56% on Friday to settle at $1.8030 a pound.
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 40%.
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 May delivery declined 0.45% to trade at $0.1751 a pound.
The May contract tumbled 2.27% on Friday to settle at $0.1766 a pound as a smaller delivery than last year against the expired March futures fuelled concerns over a slowdown in demand.
Sugar prices advanced 11.7% in February amid speculation dry weather in Brazil will cut this year’s cane 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.
Elsewhere, cotton futures for May delivery rose 0.9% to trade at $0.8793 a pound. The May contract lost 0.76% on Friday to settle at $0.8714 a pound.
