Cotton futures fell for the second straight day amid signs that global demand is shrinking. Orange juice dropped.
The Confederation of the Indian Textile Industry said this week that it plans to cut production by a third because of a “huge decline” in demand. India is the world’s second-biggest cotton producer. Prices have plunged 29 percent since touching a record in March as consumption eased in China, the world’s biggest user.
“Sinking demand is a problem, as shown by India cutting production,” said Mike Stevens, an independent trader in Mandeville, Louisiana. “The cotton market won’t support higher prices.”
Cotton for July delivery dropped 0.04 cent to settle at $1.5561 a pound at 2:38 p.m. on ICE Futures U.S. in New York. Last month, the fiber tumbled 21 percent as demand eased in China following a rally to a record $2.197 on March 7.
The price still gained 7.2 percent this week, the most since early March. Futures rose as adverse weather threatened crops in China, the leading grower, and the U.S., the top exporter.
Orange-juice futures for July delivery dropped 3.2 cents, or 1.7 percent, to $1.8175 a pound. The price is down 0.6 percent this week.