June 22 (Bloomberg) -- Cotton prices fell to a two-week low as the dollar strengthened, reducing the appeal of commodities in New York. Orange juice also declined.

The dollar gained as much as 0.8 percent against a basket of six major currencies, increasing the cost of U.S. supplies for overseas buyers. The country is the world’s largest cotton exporter.

“The dollar is still a big story,” said Tom Reardon, the president of Delta Brokerage in New York. “It continues to get stronger. We are such an export market, we are dollar- sensitive.”

Cotton futures for December delivery fell 0.89 cent, or 1.6 percent, to 55.49 cents a pound on ICE Futures U.S. in New York. Earlier, the price touched 54.77 cents, the lowest for a most- active contract since June 8.

Lower prices for competing crops also may have pulled down cotton, Reardon said. Corn and wheat fell to seven-week lows, and soybeans dropped to the lowest since early April.

The U.S. Department of Agriculture in March released the results of a survey that indicated farmers would plant 7 percent fewer acres of cotton this year to sow more profitable grains and oilseeds.

“Anything that’s bearish for grains will have a spillover effect for cotton,” Reardon said.

Planting of the cotton crop is almost finished and the USDA will update its acreage estimate on June 30.

Orange Juice Falls

In another ICE market, orange-juice futures for September delivery fell 2 cents, or 2.5 percent, to 78.4 cents a pound. Orange juice earlier reached 78.05 cents, the lowest for a most- active contract since April 8.

The price plunged 17 percent this month as rain in Florida, the largest orange grower after Brazil, improved growing conditions for oranges that will be picked starting in October.

Also, Southern Gardens Citrus, a Florida orange grower, today said it has begun field trials of trees that were resistant to canker and greening diseases in laboratory tests.

Citrus greening, first confirmed in Florida in September 2005, is considered to be the most serious disease of citrus trees in the world, according to Southern Gardens.

“Southern Gardens’ research field trials represent a major step forward in determining a final solution for eliminating this disease,” Rick Kress, the company’s president, said in a statement.

The trees were developed using research initiated in 2007 by Texas A&M AgriLife Research, Clewiston, Florida-based Southern Gardens said today in an e-mailed statement.

To contact the reporter on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net.

Last Updated: June 22, 2009 16:12 EDT