Investing.com - U.S. coffee prices extended steep losses from the previous week to hit a five-week low as traders continued to close out bets on higher prices amid easing concerns over Brazil’s crop.
On the ICE Futures U.S. Exchange, Arabica coffee for May delivery fell to a daily low of $1.6600 a pound, the weakest level since February 20. Arabica last traded at $1.6880 a pound during U.S. morning hours, down 1.24%, or 2.1 cents.
Coffee prices lost 1.72%, or 3.0 cents on Friday to settle at $1.7115 a pound after weather forecasts predicted much-needed rainfall in Brazil’s main coffee-growing regions.
The May Arabica contract plunged 13.6% last week.
Arabica prices hit a two-year high of $2.0975 a pound on March 12 as drought conditions in key coffee-growing regions in Brazil was expected to curb output.
Brazil is the world's largest producer and exporter of Arabica coffee.
Meanwhile, sugar futures for May delivery hit a session low of $0.1668 a pound earlier, the cheapest since February 21, before trimming losses to last trade at $0.1680 a pound, down 0.36%.
The May sugar contract declined 1.29% to settle at $0.1683 a pound on Friday.
Sugar prices came under pressure as rains in Brazil raised expectations that drought-driven crop losses may not be as heavy as feared.
Sugar rallied to a four-month high of $0.1846 a pound on March 6, amid speculation dry weather in Brazil will cut this year’s cane crop.
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 May delivery eased up 0.04% to trade at a one-year high of $0.9335 a pound. The May cotton contract rallied 1.23% on Friday to settle at $0.9331 a pound.
Prices of the fiber have been well-supported in recent weeks over tightening nearby supplies in the U.S., the world's top exporter.