Cotton Drops as India Reduces Textile Output; Orange Juice Falls
Source: bloomberg Date: 2011-05-30
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.
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.
