Cotton Futures Tumble to Nine-Month Low; Orange Juice Declines


Cotton prices fell to the lowest in almost nine months as the dollar’s rally reduced the appeal of exports from the U.S., the world’s largest shipper. Orange juice dropped the most since April.

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.