Cotton prices fell, capping the longest slump in a year, as U.S. government reports spurred economic concerns. The U.S. economy expanded less than forecast in the first quarter, and more people filed claims for unemployment-insurance payments last week, separate reports showed today. The price slide started on May 20, partly on speculation that demand will ease in China, the world’s biggest user, amid estimates for slower economic expansion.
“Since cotton is a little more sensitive to what’s going on economically, that might explain why it’s down,” Sharon Johnson, a senior cotton specialist at Knight Futures in Roswell, Georgia, said in a telephone interview.
Cotton for July delivery dropped 0.7 percent to 80.13 cents a pound at 2:30 p.m. on ICE Futures U.S. in New York. The price fell for the eighth straight session, the longest slide since mid-May 2012. Earlier, the commodity touched 79.87 cents, the lowest for a most-active contract since Jan. 23. (Source: Bloomberg)