Farmers in India, the world’s second-largest cotton grower, may plant more of the crop than estimated after monsoon rains covered the main growing regions early, easing a drought that cut production the previous year. Prices declined.
Cotton futures fell, heading for the third decline in four sessions, on mounting concern that global supplies will be more than sufficient to meet demand. Orange juice fell for the first time in a week.
Cotton futures tumbled to a 31-month low on signs that a slowing world economy will expand a surplus of the fiber, reducing costs for clothing retailers including J. Crew Group Inc. and American Eagle Outfitters Inc.
Cotton planting in India, the world’s largest grower after China, may drop for a second year after the weakest monsoon rains in three years deepened a water shortage in the main growing regions. Futures in Mumbai climbed.
Cotton-yarn production is migrating to East Asia from China, which has become less competitive, according to Armelle Gruere, a consultant to the Washington- based International Cotton Advisory Committee.
The global cotton harvest will probably tumble more than expected in the coming year as farmers make more money planting grains even after the fiber’s rally, the International Cotton Advisory Committee said.