U.S. soft futures were mixed on Wednesday, with sugar prices trading near the lowest level since July 2010 as investors continued to focus on massive global supplies of the sweetener.
On the ICE Futures U.S. Exchange, sugar futures for March delivery traded at USD0.1596 a pound, up 0.2%. Prices of the sweetener fell to a session low of USD0.1586 a pound earlier, the weakest level since July 2, 2010. The March contract settled 1.91% lower on Tuesday to end at USD0.1596 a pound.
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.
Meanwhile, Arabica coffee for March delivery traded at USD1.1475 a pound, up 0.25%. The March Arabica contract held in a range between USD1.1440 a pound and USD1.1513 a pound.
The March contract lost 1% on Tuesday to settle at USD1.1415 a pound.
Coffee prices have been well-supported in recent sessions as investors closed out bets on lower prices, a move known as short-covering.
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.
Elsewhere, cotton futures for March delivery traded at USD0.8259 a pound, down 0.45%. Cotton prices traded in a range between USD0.8253 a pound and USD0.8292 a pound.
The March contract rallied to USD0.8372 a pound on Tuesday, the highest since October 18, before turning lower to settle at USD0.8295, down 0.52%.
Indications of robust demand from top consumer China have been supporting prices of the fiber in recent sessions.
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