Cotton futures dropped in value on Tuesday as concern mounted about reduced demand for the soft fiber as global economies face slowdowns, Bloomberg reports.
Japan, owner of the globe's third-largest economy behind those of the U.S. and China, reduced its assessment of its economy for the first time since November of last year, according to a monthly report issued by the Cabinet Office in the capital of the Pacific Rim nation. The report also cited additional slowdowns of international economies along with capital and financial markets' "sharp fluctuations."
"A slower world economy has a negative impact on cotton, as purchases can be delayed, unlike food commodities," states an email punned by president Sid Love with Joe Kropf & Sid Love Consulting in Overland Park, Kansas, to Bloomberg.
At 2:30 p.m. on Tuesday, cotton futures fell 0.68 percent, a 0.52 cent loss to 75.62 cents per pound.
Reuters reports the nation's recovery from the Great Recession has run into hitches and the additional pressure is mounting on the Bank of Japan to implement some monetary easing policies as a method of spurring the economy.
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