Soft futures mixed, sugar at a three-year low

Soft futures were mixed on Tuesday with coffee, cocoa and sugar marking losses on the day, while cotton gained.

On the ICE Futures U.S. Exchange, coffee futures for July delivery traded at $1.2743 a pound at 12:13 GMT, down 1.01% on the day. Prices ranged between days low of $1.2723 and high at $1.2898.

Coffee prices declined on outlook of increasing production of both Arabica and Robusta sorts. Brazil accelerated coffee harvesting amid favorable conditions and weaker local currency gave producers competitive advantage on the markets. Brazil is the world’s largest producer and exporter. The country produced 54.5 million 60-kilogram bags of coffee in the 2010-2011 crop year and its export in 2011 stood at 43.484 million bags. Brazil is projected to achieve a record high production in 2013 for an off-year in its biennial production cycle. Vietnam is the world’s second biggest producer and exporter that mainly grows the Robusta sort.

Brazil is projected to produce 48.6 million bags of coffee in 2013. Harvesting there was stalled up to last week due to unfavorable wet weather. According to a Somar Meteoroligia report, growing areas will get dry weather for a long period after June 5.

According to the International Coffee Organisation, the 2012-2013 arabica production in most countries will jump 5.7%, and robusta output will jump by 8.8%.

Elsewhere on the market, sugar fell on Tuesday to a three-year low, pressured by concerns of ample supply. Sugar futures for July delivery lost 0.92% on the day, trading at $0.1621 a pound at 12:41 GMT. Prices ranged between days low of $0.1619 and high at $0.1644. Sugar fell to a three-year low $0.1632 on June 4 as farmers in Brazil accelerated harvesting amid favorable weather conditions. Brazil accounts for 20% of global sugar production and 39% of the sweetener’s export.

Meanwhile, cotton marked a 0.17% increase for the day and traded at $0.8681 a pound. The U.S. Department of Agriculture said in its weekly crop progress report on Monday that 88% of the nations cotton crop was planted as of the week ending June 9, compared to 82% in the preceding week. However, this was lower than last years 95% during the same week and the five-year average 92% figure.

Cocoa futures for September delivery marked losses on Tuesday. Cocoa stood at $2 359.50 a metric ton at 12;38 GMT, down 0.32% for the day. Prices ranged between days low of $2 348.50 and high at $2 367.