Cotton prices have dropped back to earth, with concern about slow demand overshadowing a potentially poor harvest while the dollar surges to 20-year highs.
Futures have shed 25% since late last month, effectively eliminating gains fueled by a U.S. Department of Agriculture forecast that more than 40% of U.S. acres planted with cotton this year wouldn’t be harvested because of drought. The drop brings prices closer to their typical levels, with the most actively traded futures ending Tuesday at 88 cents a pound, down more than 40% from their peak in May, which was the highest price in more than a decade.
