Investing.com - U.S. cotton prices rallied to the highest level since February 2012 on Wednesday, amid growing concerns over tightening nearby supplies in the U.S., the world''s top exporter.
On the ICE Futures U.S. Exchange, U.S. cotton futures for May delivery climbed to a session high of $0.9735 a pound earlier, the strongest level since February 3, 2012. Cotton last traded at $0.9629 a pound during U.S. morning hours, up 2.32%, or 2.2 cents.
The May cotton contract surged 3.84%, or 3.5 cents, on Tuesday to settle at $0.9411 a pound.
Prices of the fiber have been well-supported in recent weeks amid speculation tightening global supplies will fall short of demand.
According to the U.S. Department of Agriculture, the U.S. produced 12.87 million 480-pound bales of cotton in 2013, 2.4% below an estimate of 13.2 million bales released earlier this month.
Elsewhere, U.S. sugar futures for May delivery jumped 1.47% to trade at a one-week high of $0.1723 a pound, as investors continued to monitor weather and crop conditions in top grower Brazil.
The May sugar contract advanced 0.77% to settle at $0.1697 a pound on Tuesday.
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.
Meanwhile, Arabica coffee for May delivery dropped 1%, or 1.8 cents, to trade at $1.7293 a pound. Coffee prices lost 0.62%, or 1.1 cents, on Tuesday to settle at $1.7530 a pound.
The May Arabica contract plunged 13.6% last week after weather forecasts predicted much-needed rainfall in Brazil’s main coffee-growing regions.
Arabica prices hit 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.
Brazil is the world''s largest producer and exporter of Arabica coffee.