The harvest that began in August will see farmers produce 0.3 percent more cotton than originally forecast in September, according to a report issued by the U.S. Agriculture Department. Production is projected to be on the increase in California, Mississippi and Georgia, which will compensate for the worst drought in 100 years in Texas, which otherwise is the soft fiber's top-producing U.S. state.
"There's more supply and less demand," President Keith Brown of Georgia broker Keith Brown & Co.told Bloomberg. "Global inflation is affecting foodstuffs, and people will go to that before they go to cotton."
At 2:36 p.m. on Wednesday, cotton futures fell 2.86 percent, a 2.96 cent slip to $1.0051 per pound.
Agrimoney reports analysts with Rabobank labeled the soft commodity's performance "strongly bearish" while also noting cotton futures can rebound if they are boosted by user purchases and concerns about sharp corrections in preparation for the spring planting season.
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