Investing.com - U.S. soft futures were mixed on Tuesday, with coffee prices rallying sharply to hit the highest level since February 2012 amid ongoing concerns over hot and dry weather conditions in Brazil, the world''s largest producer and exporter of Arabica coffee.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery rose to a session high of $2.0720 a pound, the most since February 28, 2012.
Arabica prices last traded at $2.0678 a pound during U.S. morning hours, up 2%. The May coffee contract surged 3.33% on Monday to settle at $2.0340 a pound.
Coffee prices have been well-supported in recent months as drought conditions in key coffee-growing regions in Brazil was expected to curb output. Year-to-date, Arabica coffee is up almost 85%.
Meanwhile, sugar futures for May delivery dipped 0.1% to trade at $0.1818 a pound.
The May sugar contract picked up 1.17% on Monday to settle at $0.1822 a pound, 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 inched down 0.2% to trade at $0.9136 a pound.
The May cotton contract advanced 0.32% on Monday to settle at $0.9156 a pound after the U.S. Department of Agriculture lowered its outlook for domestic supplies at the end of the 2013-14 season to 2.8 million bales on higher exports.
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