Soft futures mixed

Soft futures were mixed on Wednesday on the ICE Futures U.S. Exchange. Sugar prices bounced off lowest levels since July 2010 as investors returned to the market amid speculations prices will start climbing. Arabica coffee also rose, while cotton futures plunged.

Sugar futures for July delivery traded at $0.1652 a pound at 12:26 GMT, up 0,82% on the day. Sugar prices have been under heavy pressure as farmers in Brazil, the world’s biggest sugar producer and exporter, started to accelerate the sweetener’s harvest. Brazil accounts for 20% of global sugar production and 39% of the sweetener’s export.

The U.S. Department of Agriculture stated in its crop progress report on Monday that as of June 2 100% of the U.S. sugar was planted, compared to 94% the preceding week. It is also higher than the 98% five-year average and the 96% planted the same week last year.

Elsewhere on the market, Arabica coffee traded at $1,2858 a pound at 12:32 GMT, marking a 0.90% gain. Coffee prices have been under pressure as traders expect a huge harvest in the world’s biggest exporter Brazil. The Arabica contract for July delivery fell to $1.2507 a pound on May 31, the lowest level since October 2009.

Also, July cotton futures stood at $0.8328 a pound at 12:35 GMT, signing off 1.52% of its value. According to the U.S. Department of Agriculture’s report published on Monday, 87% of the nation’s cotton crop was planted during the week ending June 2, compared to 59% in the preceding week. This is also 5% higher than the same week last year and 4% more than the five-year average, which equals to 83%.