Dec. 21 (Bloomberg) -- Cotton futures fell for the second straight day as demand ebbed and the dollar rebounded. Orange juice also dropped.
The greenback rose against a basket of major currencies, eroding the appeal of U.S. exports. The dollar dropped in the previous four sessions. Estimated cotton-futures volume yesterday in New York was 8,587 contracts, compared with a daily average of 64,519 in the previous three months.
“Demand is still abysmal, and trading volumes are very light” before the holidays, Chris Kramedjian, a senior risk-management consultant at INTL FCStone in Nashville, Tennessee, said in a telephone interview. “With the dollar higher, people looking at the macroeconomic environment would sell this market.”
Cotton for March delivery fell 0.3 percent to 86.51 cents a pound at 10:53 a.m. on ICE Futures U.S. in New York. The price dropped 0.3 percent yesterday. Before today, the fiber plunged 40 percent this year amid rising supplies and dwindling demand.
Orange-juice futures for March delivery declined 0.8 percent to $1.6325 a pound. Before today, the price dropped 6.6 percent this month.
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