Cotton fell, extending the longest slump since June, on speculation that slowing growth in Chinawill curb demand.
The International Monetary Fund lowered its forecasts for growth in China, the world’s biggest user of the fiber, to about 7.75 percent this year and next. In April, the IMF projected growth of 8 percent this year and 8.2 percent in 2014. Through May 26, 59 percent of the U.S. cotton crop was planted, up from 39 percent a week earlier, the government said in a report yesterday. Sowing is about 17 percentage points behind last year.
“People are thinking we’re going to get this crop off to a reasonably decent start after this horrible start we got off to earlier in the year,” Jack Scoville, a vice president at Price Futures Group in Chicago, said in a telephone interview. “We’ve got some demand questions,” he said, citing China.
Cotton for July delivery fell 0.5 percent to 80.99 cents a pound at 11:39 a.m. on ICE Futures U.S. in New York. The price is down for the seventh consecutive session, headed for the longest slump since June 5.