Investing.com - U.S. coffee prices retreated on Wednesday, as investors cashed out of the market to lock in gains from the previous session’s more than 5% surge amid ongoing concerns over crop conditions in Brazil.
On the ICE Futures U.S. Exchange, Arabica coffee for July delivery fell 0.87%, or 1.82 cents, to trade at $2.0835 a pound during U.S. morning hours.
Coffee prices soared 5.34%, or 10.75 cents, on Tuesday to settle at $2.1190 a pound.
Arabica prices rallied to a 26-month high of $2.1892 a pound on April 23, as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
Brazil is the world''s largest producer and exporter of Arabica coffee.
Meanwhile, U.S. sugar for July delivery advanced 0.65% to trade at $0.1773 a pound. Prices of the sweetener eased up 0.06% on Tuesday to settle at $0.1757 a pound.
Investors continued to monitor weather and crop conditions in top grower Brazil after the nation’s top cane industry group Unica said last week that output from the country’s main cane region will total 32.5 million tonnes, down 5% from 2013/14, citing a severe drought early in the year.
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 inched up 0.04% to trade at $0.9410 a pound. The July cotton contract rallied 1.98% on Tuesday to end at $0.9406 a pound.
According to the U.S. Department of Agriculture, nearly 13% of the U.S. cotton crop was planted as of last week, compared to the five-year average of 18% for this time of year.
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