Cotton futures were dropping in value on Monday, resuming a downward trend from last week that is seeing the soft fiber drive toward its lowest price in 14 days, according to published reports.
ForexPros reports the price drop is partially attributable to reduced global demand. The U.S. Department of Agriculture reduced the outlook for global cotton demand by 2.6 percent as compared to figures from November, which was 114.27 million bales. Newly released figures amount to 111.34 million bales for the marketing season ending July 31.
Adjustments indicate "continued weak mill demand owing to an uncertain world economic outlook," according to the Agriculture Department as cited by ForexPros. The change also reflects a "shift by clothing makers to more polyester" following the upward drive of the price of cotton futures earlier this year.
At 1:48 p.m. on Monday, cotton futures fell 3.3 percent, a 2.98 cent slip to 87.45 cents per pound.
Established on March 7, the record price for cotton futures is $2.197 per pound.
Bloomberg reports the commodities complex was not having the best of trading days on Monday as futures for the soft commodity and silver each were down more than 3 percent at one point.
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