The greenback rose to a six-week high against a basket of six major currencies, and the Thomson Reuters/Jefferies CRB Index of 19 raw materials fell as much as 1.3 percent as European-debt concerns escalated. Cotton has tumbled 50 percent from a record $2.197 a pound on March 7 as demand dwindled in China, the world’s biggest buyer.
“There’s a good bit of bearishness regarding economic activity, whether that’s on economic performance in the EU or manufacturing demand in China,” said Chris Kramedjian, a risk- management consultant at FCStone Fibers & Textiles in Nashville, Tennessee. “Managed-money and commodity bulls are licking their wounds and reevaluating their positions.”
Cotton for December delivery tumbled by the exchange limit of 5 cents, or 4.4 percent, to settle at $1.0888 at 2:42 p.m. on ICE Futures U.S. in New York. That’s the lowest for a most- active contract since Oct. 18.
Orange-juice futures for September delivery fell 4.2 cents, or 2.2 percent, to settle at $1.8695 a pound on ICE, capping the biggest decline since April 13.