Investing.com - U.S. soft futures were mixed on Tuesday, with coffee turning lower as investors cashed out of the market to lock in gains from a furious rally which took futures to the highest level since May earlier in the session.
On the ICE Futures U.S. Exchange, Arabica coffee for March delivery rallied to a session high of USD1.3790 a pound, the strongest since May 17, before turning lower to trade at USD1.3338 a pound during U.S. morning hours, down 1.85%.
The March contract surged 8.59% on Monday to settle at USD1.3595 a pound amid speculation adverse weather conditions in top grower Brazil will damage the quality of the crop.
Updated weather forecasting models pointed to hot and dry conditions in key coffee-growing regions in Brazil. The South American nation had the hottest January ever and the least rain for the period in 20 years, according to agricultural meteorologists.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, sugar futures for March delivery rose to a daily high of USD0.1577 a pound, the most since January 8, before erasing gains to trade at USD0.1563 a pound, down 0.75%.
The March sugar contract climbed 1.22% on Monday to settle at USD0.1574 a pound as the same dry conditions that boosted coffee, supported sugar as well.
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 March delivery traded at USD0.8592 a pound, up 1.05%, as frigid temperatures in key cotton-growing states in the U.S. fuelled concerns over supplies.
Cotton prices traded in a range between USD0.8517 a pound and USD0.8597 a pound. The March contract settled 0.96% lower on Monday to end at USD0.8501 a pound.