Soft futures mixed; Cotton climbs to 2-week high

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Investing.com – U.S. soft futures were mixed during U.S. morning trade on Tuesday, with cotton prices extending gains from the previous session to hit a two-week high.

Meanwhile, coffee and sugar prices continued to trade near multi-year lows amid ongoing concerns over ample global supplies.

On the ICE Futures U.S. Exchange, cotton futures for July delivery traded at USD0.8295 a pound, up 0.7% on the day.

The July contract rose by as much as 1.5% earlier in the session to hit a daily high of USD0.8364 a pound, the strongest level since May 23.

The U.S. Department of Agriculture said Monday that nearly 82% of the U.S. cotton crop was planted as of June 2, below the 87% planted in the same week a year earlier.

The five-year average for this time of year is 83%.

Meanwhile, sugar futures for July delivery traded at USD0.1644 a pound, little changed on the day.

The July contract was stuck in a range between USD0.1648 a pound, the daily high and a session low of USD0.1642 a pound, the lowest level since July 2010.

The sweetener has been under heavy selling pressure in recent months as farmers in Brazil started to accelerate harvesting of the nation’s sugar crops.

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, Arabica coffee for July delivery traded at USD1.2843 a pound, down 0.3% on the day. The July contract held in a range between USD1.2808 a pound, the daily low and a session high of USD1.2998 a pound.

The July coffee contract fell to USD1.2507 a pound on May 31, the lowest level since October 2009.

The coffee market has been under heavy selling pressure in recent weeks as traders eyed a huge harvest in top grower Brazil.

Some technical selling also weighed after prices broke below key support levels, triggering a flurry of automatic sell orders amid bearish chart signals.

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