China is hoarding a record amount of cotton to aid farmers as global production exceeds demand for a fourth consecutive year, increasing the risk of a supply surge that would tip prices into a bear market.
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.
Global cotton stockpiles next year will be 7 percent bigger than estimated in July and the largest ever as India’s crop improves and demand grows more slowly that expected, the International Cotton Advisory Committee said.
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.