Investing.com – Cotton futures were down sharply for a second day on Monday, slumping to a seven-week low as a combination of easing concerns over U.S. crop conditions and worries over a slowdown in top consumer China drove prices lower.
On the ICE Futures U.S. Exchange, cotton futures for December delivery traded at USD0.9869 a pound during European morning trade, dropping 1.5%.
It earlier fell by as much as 1.8% to trade at USD0.9828 a pound, the lowest price since August 12.
Industry weather group Telvent DTN said in a report earlier that it expected three to five inches of rainfall across most parts of the U.S. Midwest and Great Plains from October 8 to October 10.
The weather group added that Texas, the largest cotton growing state in the U.S., was expected to receive one to three inches of rain during the same period.
"This to be the most significant rain this area has seen in months," the weather group said in a report.
Cotton prices came under further pressure as markets in China will remain closed this week for the National Day holiday, removing support for the fiber as the nation isn't buying to boost its stockpiles, according to agribusiness financial service provider Rabobank.
The U.S. is the world’s third largest cotton producer and the biggest exporter of the fiber, while China is the world’s biggest cotton consumer.
Mounting fears over a possible Greek sovereign debt default saw risk aversion sharpen, boosting demand for the safe haven U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.35% to trade at 79.57, after rising earlier to 79.67, the highest since January 18.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Elsewhere, on the Chicago Mercantile Exchange, wheat for December delivery shed 0.8% to trade at a 14-week low of USD6.0413 a bushel, corn for December delivery tumbled 2.11% to trade at a ten-month low of USD5.7913 a bushel, while soybeans for November delivery slumped 0.91% to trade at a 12-month low of USD11.6788 a bushel.
On the ICE Futures U.S. Exchange, cotton futures for December delivery traded at USD0.9869 a pound during European morning trade, dropping 1.5%.
It earlier fell by as much as 1.8% to trade at USD0.9828 a pound, the lowest price since August 12.
Industry weather group Telvent DTN said in a report earlier that it expected three to five inches of rainfall across most parts of the U.S. Midwest and Great Plains from October 8 to October 10.
The weather group added that Texas, the largest cotton growing state in the U.S., was expected to receive one to three inches of rain during the same period.
"This to be the most significant rain this area has seen in months," the weather group said in a report.
Cotton prices came under further pressure as markets in China will remain closed this week for the National Day holiday, removing support for the fiber as the nation isn't buying to boost its stockpiles, according to agribusiness financial service provider Rabobank.
The U.S. is the world’s third largest cotton producer and the biggest exporter of the fiber, while China is the world’s biggest cotton consumer.
Mounting fears over a possible Greek sovereign debt default saw risk aversion sharpen, boosting demand for the safe haven U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.35% to trade at 79.57, after rising earlier to 79.67, the highest since January 18.
A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.
Elsewhere, on the Chicago Mercantile Exchange, wheat for December delivery shed 0.8% to trade at a 14-week low of USD6.0413 a bushel, corn for December delivery tumbled 2.11% to trade at a ten-month low of USD5.7913 a bushel, while soybeans for November delivery slumped 0.91% to trade at a 12-month low of USD11.6788 a bushel.