June 11 (Bloomberg) -- Cotton futures dropped for the second straight session on speculation that global supplies will be ample. Orange juice fell, capping the longest slump in three weeks.
In the year starting Aug. 1, inventories in the U.S., the world’s biggest exporter, may rise to 5.15 million bales, compared with 4.9 million estimated last month by the government, according to a Bloomberg News survey. The U.S. Department of Agriculture will update its forecast tomorrow. A bale weighs 480 pounds, or 218 kilograms.
“There’s going to be a big surplus next year,” Andy Ryan, a senior risk manager at INTL FCStone in Nashville, Tennessee, said in a telephone interview.
Cotton futures for December delivery declined 0.8 percent to settle at 69.29 cents a pound at 2:38 p.m. on ICE Futures U.S. in New York. The price dropped 3.3 percent on June 8. The fiber has slumped 25 percent this year.
Orange-juice futures for July delivery fell 0.5 percent to $1.1305 a pound, the third straight drop.
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