U.S. soft futures were mixed in rangebound trade on Tuesday, with cotton prices rallying as freezing weather in key cotton-growing states in the U.S. was likely to slow the pace of the harvest.
On the ICE Futures U.S. Exchange, cotton futures for March delivery traded at USD0.8483 a pound, up 1.45%. Cotton prices rose by as much as 2% earlier in the day to hit a session high of USD0.8501 a pound. The March contract settled 0.83% higher on Monday to end at USD0.8363 a pound.
Cotton traders looked ahead to the U.S. Department of Agriculture’s closely-watched monthly supply-demand report due on Friday.
Meanwhile, sugar futures for March delivery traded at USD0.1612 a pound, up 0.1%. Prices of the sweetener held in a range between USD0.1609 a pound and USD0.1619 a pound.
The March contract fell to USD0.1597 a pound on Monday, the lowest since December 19, before trimming losses to end little changed at USD0.1608 a pound.
Sugar prices have been on a downward trend in recent weeks as investors continued to focus on massive global supplies of the sweetener. Prices of the sweetener fell to a three-and-a-half-year low of USD0.1586 a pound on December 18.
Elsewhere, Arabica coffee for March delivery traded at USD1.2135 a pound, flat on the day. The March Arabica contract rose to a session high of USD1.2210 a pound earlier, the strongest level since August 20. The March contract surged 4% on Monday to settle at USD1.2100 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.
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