U.S. cotton futures closed slightly lower during trading on Thursday, as the price of the commodity dropped from a five-month high as investors looked to cash in on a chance to maximize profits, Reuters reports.
The price of cotton eased for the first time in five trading sessions, following concerns that a lack of quality product may lead to a shortage of supply in the market in the near future.
"The way this market has rallied has caught too many people short," Jobe Moss of cotton traders MCM Inc in Lubbock, Texas, told the news outlet. "It's only right that some profit-taking comes in, but there's still a lot of upside pressure that's keeping things up."
As of end of trading on Thursday, the most-actively traded cotton contract for cotton was down 0.2 percent to 77.72 cents a pound.
Agrimoney.com reports that the price of the commodity may remain influenced by supply worries in the coming weeks, as less than half of the U.S. crop is making the grade sufficient to meet delivery criteria.
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