Investing.com - Sugar futures edged lower on Tuesday, as market players continued to assess the outlook for Brazilian supplies.
On the ICE Futures Exchange, U.S. sugar for October delivery declined 0.29% to trade at $0.1860 a pound during U.S. morning hours.
The October contract rose to $0.1881 a pound on Monday, the most since October 29, 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 0.38% to trade at $1.7715 a pound. The September coffee contract rose 1.08% on Monday to settle at $1.7740 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 December delivery eased down 0.19% to trade at $0.7754 a pound. The December cotton contract rose 0.78% on Monday to end at $0.7768.
According to the U.S. Department of Agriculture, nearly 53% of the U.S. cotton crop was in “good” to “excellent” condition as of June 22, improving from 51% planted in the preceding week.
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