Projections of increased supplies pulled down cotton futures to their lowest price in 21 months on Friday, according to Reuters.
Also tugging down the value of the soft fiber on Friday was the reduced pace of industrial production in Asia. Global supplies of cotton are projected to gain 10 percent to amount to 73.75 million bales for when the season begins on August 1, according to a forecast issued by the U.S. Agriculture Department.
"If China's slowing more than expected, then it drives the risk-off attitude in commodity markets," agribusiness economist Michael Creed with National Australia Bank told Bloomberg. "The market is still trying to come to grips with the weakening global economy and a market that's looking increasingly comfortable in terms of how well it’s supplied."
At 2:34 p.m. on Friday, cotton futures dropped 3.48 percent, a .0285 cent loss to 78.97 cents per pound.
Reuters reports the soft fiber was nearing its lowest price in 24 months for the second consecutive trading session.
The record price of cotton futures is $2.197 per pound as established on March 7 of last year.
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