Droughts are harming crops in Texas, the U.S.' top grower of the soft fiber, Bloomberg reports, basing its information on the National Weather Service. The high likelihood of spring flooding in more than half of the nation's states is driving cotton futures higher.
"It's time to move into an optimal planting period, and the Texas conditions are too dry, while many other states are too wet," Mike Stevens, an independent trader in Louisiana, told the news service. "That lends the market some support."
At 2:44 p.m. on Wednesday, cotton futures dropped 3.81 percent, a 0.06 cent slip to $1.5151 per pound.
Despite having skyrocketed 89 percent in the past year, cotton futures dove 21 percent in April. That plunge is attributable to decreased demand in China, which is the globe's top importer of the soft commodity.
The month prior, cotton futures rose to a record price of $2.197 per pound.
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