The reduced pace of global growth and development pushed down cotton futures on Wednesday, according to Bloomberg.
With five straight days of losses, the soft fiber is driving toward its lengthiest slump since July. Cotton's top exporter is the U.S., which is likely to see reduced economic growth convert to minimized demand for supplies. But the five days of losses is nothing new to the soft commodity. Since notching record highs of $2.197 per pound on March 7, cotton futures have lost more than 50 percent of their value.
"A lot of people are worried about demand destruction" due to the continuing and deepening economic crisis in the euro zone, Fain Shaffer of Infinity Trading in Oregon told Bloomberg. "There won't be as much need for as much cotton."
At 2:17 p.m. on Wednesday, cotton futures dropped 2.3 percent, a 2.42 cent slide to $1.0299 per pound.
The Lubbock Avalanche-Journal reports large amounts of sales of U.S. cotton were cancelled last week, a likely factor that helped drive down the price of cotton futures.
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