U.S. soft futures were mostly lower during U.S. morning trade on Wednesday, with sugar prices declining for the second consecutive day as farmers in Brazil started to accelerate harvesting of the nation’s sugar crops.
On the ICE Futures U.S. Exchange, sugar futures for July delivery traded at USD0.1755 a pound, down 0.45% on the day. The July contract fell by as much as 0.5% earlier in the day to hit a session low of USD0.1754 a pound.
Sugar futures fell to a low of USD0.1718 a pound on May 2, the weakest level since August 10, 2010,
Farmers in Brazil’s center-south region, which accounts for about 90% of the country’s production, are forecast to harvest a record 589.6 million metric tons of sugar cane in the 2013-14 season, which began April 1, according to Unica, Brazil’s sugar industry association.
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.