Cotton futures are kicking off the week slipping in value, a continuation of three straight days of losses to finish last week, Bloomberg reports.
A report by prominent researcher Cotlook stated global demand for the soft fiber will be 1.7 percent less than already forecast. For year-ending this month, global cotton consumption will total 23.864 million metric tons.
Further, Cotlook reduced estimates for the coming year to 24.558 metric tons, a 3.5 percent reduction. Both reductions have done their part to drag down the soft fiber 57 percent in value since it notched its top price ever in early march.
"We've spent the last two months worrying about the demand side, and justifiably so," commodities analyst Jack Scoville of Price Futures Group told Bloomberg.
At 10:06 a.m. on Monday, cotton futures slipped 1.11 percent, a .0109 cent drop to .9755 cents per pound.
The Financial Times reports the top official of the globe's biggest cotton merchant addressed the free-falling commodity in New York late last week. Joe Nicosia of Allenberg Cotton warned the following 12 months might see the soft fiber continue thrashing and swinging.
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