Forexpros – U.S. soft futures were mostly lower during early U.S. morning trade on Monday, with sugar prices trading close to the lowest level since the end of June as beneficial weather in India and Brazil improved crop prospects in the world’s two largest growers of the sweetener.

On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at USD0.2080 a pound, shedding 0.35%.

It earlier fell by as much as 2.1% to trade at a session low of USD0.2071 a pound. Front-month prices hit a six-week low of USD0.2065 a pound on Friday.

Sugar prices have been under heavy selling pressure since climbing to a three-month high in mid-July, as concerns over damage to sugarcane crops in Brazil’s center-south region eased.

The sweetener has lost nearly 14% since hitting a four-month high of USD0.2398 a pound on July 20.

Brazil’s Center South-region produces nearly 90% of the nation’s sugar. Brazil is the world’s largest sugar producer and exporter, with the USDA estimating the nation accounts for nearly 20% of global production and 39% of global sugar exports.

Sugar prices came under further pressure after India’s weather office chief said that monsoon rains will improve in the coming days, easing concerns over crop conditions in India.

Meanwhile, Arabica coffee for September delivery traded at USD1.6710 a pound, easing up 0.35%. The September contract traded in between a tight range of USD1.6718 a pound, the daily high and a session low of USD1.6528 a pound.

Coffee prices, like sugar, have been under pressure in recent weeks, as worries over the impact of adverse weather conditions on coffee crops in key growing regions in Brazil dampened the appeal of the commodity.

The bean has lost approximately 13% since hitting a four-month high of USD1.9215 a pound on July 11.

Brazil is the world’s largest producer and exporter of Arabica coffee. Arabica is grown mainly in Latin America and brewed by specialty companies.

Elsewhere, cotton futures for October delivery traded at USD0.7284 a pound, dipping 0.1%. Earlier in the day, prices fell to USD0.7236 a pound, the lowest since August 3.

Cotton prices plunged nearly 4% on Friday after the U.S. Department of Agriculture raised its estimate for global cotton stockpiles to fresh record highs, citing ample supplies and weakening global demand.

The agency now expects global stocks of the fiber at the end of the current marketing year to total 74.67 million 480-pound bales, an all-time high and 3.1% above July’s forecast.

The USDA also revised up its estimate on the U.S. cotton crop by 4% to 17.7 million bales for the 2012-13 marketing year that began August 1.

Cotton traders were looking ahead to the release of the USDA’s weekly crop progress report due out after Monday’s closing bell.

The fiber is down almost 65% from a record in March 2011 as higher prices prompted farmers to plant more crops and demand in top consumer China slowed.

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