On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.1943 a pound, adding 0.25%.
The October contract fell by as much as 0.5% earlier to hit a session low of USD0.1930 a pound, the weakest level since June 6.
Sentiment on the sweetener has been downbeat in recent weeks, losing nearly 18% since mid-July amid easing concerns over the pace of the harvest in Brazil’s Center South region.
Brazil’s top sugar industry group Unica said late last month that sugar output in Brazil’s Center South region rose 14% in the first half of August, as dry weather conditions aided the harvest.
Sugar production rose to 3.02 million metric tons between August 1 and August 15 from 2.66 million tons a year earlier.
Sugar-cane growers harvested 44.2 million tons in the period, up 14% from 38.7 million tons a year earlier.
Sugar prices rallied to a four-month high of USD0.2398 a pound on July 20, as fears that heavy rains in Brazil could damage sugarcane crops in the country’s center-south region boosted sentiment on the sweetener.
Brazil’s center south-region produces nearly 90% of the nation’s sugar. 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.
Meanwhile, Arabica coffee for December delivery traded at USD1.6525 a pound, easing down 0.05%.
The December contract was stuck in a tight trading range of USD1.6388 a pound, the daily low and a session high of USD1.6638 a pound.
Coffee prices, like sugar, have been under pressure in recent weeks, as receding concerns over the impact of adverse weather conditions on crops in key growing regions in Brazil dampened the appeal of the commodity.
Coffee futures have lost approximately 13% since hitting a four-month high of USD1.9215 a pound on July 11.
Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Elsewhere, cotton futures for October delivery traded at USD0.7495 a pound, shedding 0.1%.
The front-month contract was stuck in a tight trading range of USD0.7485 a pound, the daily low and a session high of USD0.7541 a pound.
The U.S. Department of Agriculture’s weekly crop progress report released after Tuesday’s closing bell showed that 42% of the U.S. cotton crop was rated ‘good’ to ‘excellent’ as of September 2, down 1% from a week earlier, but up from the 28% recorded in the same week a year earlier.
In the major producing state of Texas, only 23% of the cotton crop was seen as in ‘good’ or ‘excellent’ health, unchanged from the previous week.
Cotton futures have rallied in recent weeks, up nearly 11% from the lows touched in early June, as technical buying and concerns over deteriorating U.S. crop conditions boosted sentiment on the commodity.
Despite recent gains, the fiber is still down almost 65% from a record high of USD2.1970 a pound in March 2011, as higher prices prompted farmers to plant more crops and demand in top consumer China slowed.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment