U.S. soft futures were mixed on Monday, with sugar prices bouncing off a three-month low as investors returned to the market to seek cheap valuations.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1674 a pound, up 1%. Prices of the sweetener fell to a daily low of USD0.1653 a pound earlier, the weakest level since September 5, before turning higher as a round of bargain buying set in.
The March contract settled 0.6% lower on Friday to end at USD0.1659 a pound.
Sugar prices have been on a downward trend in recent months as investors focused on massive global supplies of the sweetener.
The International Sugar Organization raised its forecast for a global surplus of 4.7 million tonnes in the 2013-14 crop year that began on October 1, up from a previous estimate of 4.5 million tonnes.
Elsewhere, Arabica coffee for March delivery traded at USD1.0773 a pound, up 0.95%. The March Arabica contract traded in a range between USD1.0648 a pound, the daily low and a session high of USD1.0780 a pound.
The March contract settled 0.38% higher on Friday to end at USD1.0640 a pound.
Coffee prices have been under heavy selling pressure in recent months, as traders monitored improving crop prospects in Brazil and Colombia.
Coffee prices slumped to USD1.0100 a pound on November 7, the lowest since October 19, 2006.
Meanwhile, cotton futures for March delivery traded at USD0.8041 a pound, little changed on the day. Cotton prices held in a range between USD0.8007 a pound, the daily low and a session high of USD0.8049 a pound.
The March contract rallied 1.98% on Friday to settle at USD0.8041 a pound amid concerns frigid weather conditions in key growing regions in the U.S. will damage the cotton crop.
Cotton traders are looking ahead to the U.S. Department of Agriculture’s highly-anticipated supply and demand report for December due on Tuesday.
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