Cotton futures endured sharp losses on Wednesday, representing a stark about-face after having achieved nearly one week of gains, according to The Wall Street Journal.
Wednesday's losses were due to traders taking profits from markets in the aftermath of investors taking cover after short positions. At one point, the soft commodity was down 5.5 percent. The Wednesday performance halted gains that first began last week when the U.S. Agriculture Department announced China has purchased a large amount of cotton from the U.S.
"Not only has the fat lady warmed up, but she is singing her swan song," said Knight Futures' senior cotton analyst Sharon Johnson. "The bloom is off the bush. You don't have the same amount of buying pressure."
At 2:50 p.m. on Wednesday, cotton futures fell 2.31 percent, a 0.0172 cent loss to 72.71 cents per pound.
Reuters reports investors were cashing out due to the anticipated challenges associated with most U.S. fiber already having been harvested and sold.
The record price for cotton is $2.197 per pound as set on March 7, 2011.
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