Stockpiles of the soft fiber are set to grow by 32 percent to mark the second-largest on record, according to projections forecast by the U.S. government. Demand is likely to be exceeded by more than 15 million bales as farmers collect 123.6 million bales during the 12-month period ending in July.
"Cotton is a cub right now and can grow into a fully- fledged bear," Sterling Smith with Country Hedging of Minnesota told Bloomberg. "We're going to have exceptional production next season, and that will weigh on prices significantly."
At 11:46 a.m. on Tuesday, cotton futures fell 0.35 percent, a .31-cent slip to 88.77 cents per pound.
Reuters reports the projected increase of cotton from 123.34 million bales to 123.64 bales is contributing to the soft fiber's bullish performance as of late.
The record price of cotton, set March 7 of last year, stands at $2.197 per pound.
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