Investing.com - U.S. soft futures were lower on Monday, with coffee prices falling more than 4% as traders locked in recent gains 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 $1.8888 a pound, the cheapest since March 5.
Arabica coffee last traded at $1.8913 a pound during U.S. morning hours, down 4.45%, or 8.9 cents.
Arabica prices rallied to a two-year high of $2.0975 a pound on March 12 as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
However, Brazil’s coffee export association Cecafe said last week that ample 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 fell to a daily low of $0.1697 a pound, the weakest level since February 21, before recovering to trade at $0.1703 a pound, down 1.5%.
The May sugar contract lost 3.2% on Friday to settle at $0.1725 a pound.
Sugar rallied to a four-month high of $0.1846 a pound on March 6, amid speculation dry weather in Brazil will cut this year’s cane crop.
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 shed 0.4% to trade at $0.9185 a pound. The May cotton contract picked up 0.56% on Friday to settle at $0.9219 a pound.