Investing.com - Sugar futures extended strong gains from the previous session to hit a four-week high on Thursday, as market players continued to assess the outlook for Brazilian supplies.
On the ICE Futures Exchange, U.S. sugar for July delivery rose to a session high of $0.1756 a pound, the most since May 21, before trimming gains to last trade at $0.1754 during U.S. morning hours, up 0.29%.
The July contract rallied 2.75% on Wednesday to settle at $0.1753 a pound amid speculation Brazil is considering increasing the amount of ethanol it uses in fuel for automobiles, sparking concerns over tightening supplies.
Brazil uses sugarcane to make ethanol, unlike the U.S. where corn is primarily used.
The South American nation 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 dipped 0.06% to trade at $1.6943 a pound, the lowest since June 12. The September coffee contract lost 1.22% on Wednesday to settle at $1.6985.
Coffee rallied to a three-week high of $1.7952 on June 13 as traders worried that drought would hurt Brazilian output.
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, U.S. cotton for July delivery eased down 0.04% to trade at $0.9112 a pound. The July cotton contract rose to $0.9143 on Wednesday, the most since May 14, before settling at $0.9115, up 1.21%.
Prices of the fiber have been well-supported in recent sessions as investors readjusted position ahead of the expiration of the July contract.
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