INV: Soft futures mixed; Sugar hits 3-week high on Brazil weather concerns
Investing.com - U.S. soft futures were mixed on Monday, with sugar prices rising to a three-week high after updated weather forecasts fuelled concerns over potential crop damage in Brazil.
Brazil is the world’s largest sugar producer.
On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.1645 a pound, up 1% on the day.
The October contract rose by as much as 1.3% earlier in the day to hit a session high of USD0.1648 a pound, the strongest level since July 3.
Sugar prices extended their advance from the previous week after Brazilian industry group Datagro said rains in the center-south region in Brazil are reducing the crop’s potential to yield sugar.
Brazil's center-south region accounts for nearly 90% of Brazil's sugarcane output.
The South American country 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.
Meanwhile, Arabica coffee for September delivery traded at USD1.2398 a pound, up 1% on the day.
The September contract rose by as much as 1.7% earlier in the day to hit a session high of USD1.2565 a pound.
Weather forecasting models pointed to cooler, wetter weather across key coffee-growing regions in Brazil during the next few days, potentially disrupting the harvest.
Brazil is the world's largest producer and exporter of Arabica coffee.
Elsewhere, cotton futures for December delivery traded at USD0.8592 a pound, down 0.3% on the day. The December contract traded in a range between USD0.8584 a pound, the daily low and a session high of USD0.8616 a pound.
