Investing.com - U.S. soft futures were lower on Wednesday, with coffee prices falling from the previous session’s two-year high amid easing concerns over a disruption to supplies from Brazil, the world''s largest producer and exporter of Arabica coffee.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery fell to a session low of $2.0088 a pound, before trimming losses to trade at $2.0213 a pound during U.S. morning hours, down 1.45%.
Arabica prices rose to $2.0890 a pound on Tuesday, the most since February 14, 2012, before coming off the highs to settle at $2.0565 a pound, up 1.11%.
Coffee prices have been well-supported in recent months as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
However, prices came under pressure on Wednesday after Brazil’s coffee export association Cecafe said ample Brazilian coffee stocks from the last harvest will allow the nation''s exports to increase 6% this year and help ease the effects of a severe drought.
According to Cecafe, Brazil is expected to export a total of 33 million 60-kilogram bags in 2014, up from 31.1 million last season.
Meanwhile, sugar futures for May delivery tumbled 1.45% to trade at $0.1773 a pound. The May sugar contract lost 1.04% on Tuesday to settle at $0.1803 a pound.
Sugar prices have been boosted in recent months amid speculation dry weather in Brazil will cut this year’s cane crop.
According to Brazil-based industry group Canaplan, Brazil''s main center-south sugar cane crop will fall to less than 577 million tonnes in the April-March season. In October, Canaplan had forecast the crop that will officially start crushing in April at 577 million tonnes.
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 slumped 1.1% to trade at $0.9063 a pound, the lowest since March 6, as concerns over a slowdown in demand from top consumer China weighed.
The May cotton contract inched up 0.1% on Tuesday to settle at $0.9165 a pound.
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