Investing.com - Coffee futures fell to a six-week low on Thursday, amid indications global supplies might be on the rise despite uncertainties posed by drought in Brazil.
On the ICE Futures Exchange, Arabica coffee for July delivery fell to a session low of $1.7863 a pound, the weakest level since April 4, before trimming losses to last trade at $1.7948 during U.S. morning hours, down 1.39%.
The July coffee contract lost 2.32% on Wednesday to settle at $1.8140 a pound.
Brazil''s official crop bureau Conab said last week that the nation’s new coffee crop is expected to total 44.57 million 60-kg bags, down nearly 9% from a January estimate due to drought conditions in key coffee-growing regions in Brazil.
However, Brazil''s exports of unroasted coffee rose 15% this year through April, compared with the same stretch in 2013, as producers looked to take advantage of higher prices.
The exports came almost entirely from stockpiles, since growers started picking Arabica beans only in April. The bulk of country''s Arabica crop is expected to begin harvest in June, when a clearer picture of damage is expected.
Brazil is the world''s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.
Meanwhile, U.S. sugar for July delivery eased up 0.06% to trade at $0.1747 a pound. Prices of the sweetener fell to $0.1735 a pound on Wednesday, before settling 0.8% lower at $0.1744 as investors continued to monitor crop and weather conditions in top grower Brazil.
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, U.S. cotton for July delivery picked up 0.4% to trade at $0.8965 a pound. The July cotton contract ended Wednesday’s session 0.33% higher to settle at $0.8929 a pound.