Importers canceled large amounts of cotton sales from the U.S., pushing down cotton prices the most in about 10 sessions.
Bloomberg reports orders for nearly 33,000 cotton bales were cancelled for week ended May 19, according to the U.S. Agriculture Department. Since March, when cotton futures notched their all-time record price, the price of the soft fiber has plunged more than 30 percent as top consumer China has relaxed imports.
"This certainly confirms that there is no demand right now," Chris Kramedjian, a risk-management consultant at FCStone Fibers & Textiles in Tennessee. "The themes of the last eight weeks are carrying on."
At 2:38 p.m. on Friday, cotton futures increased 1.51 percent, a 0.0193 cent increase to $1.295 per pound. On March 7, cotton futures notched record prices of $2.197 per pound.
Cotton prices directly impact the life and times of makers of fashions and accessories, who also are impacted by the rising prices for cashmere and leather, Reuters reports. Yet at the same time, those raw materials periodically become rare because of high demand from nations in Asia.
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