Cotton Slumps to One-Month Low on China Credit, Dollar Gain
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Cotton fell to a one-month low, dropping the exchange limit, as China said it will clamp down on the use of bank credit for speculation in agricultural markets and as the dollar gained.
China, the biggest consumer of the fiber, will make it tougher to use loans to hoard products or to artificially inflate prices of agricultural goods, the China Banking Regulatory Commission said yesterday on its website. The dollar rose against most of its major counterparts after North Korea and South Korea exchanged artillery fire, encouraging demand for the greenback as a refuge.