Cotton Drops on Concern China to Raise Rates, Damping Demand
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Cotton futures slumped, set for the biggest weekly loss in 16 months, on speculation China may raise interest rates, possibly curbing demand for the fiber.
Cotton for March delivery plunged as much as 4.5 percent to $1.234 a pound on ICE Futures U.S. in New York, before trading at $1.2596 at 2:50 p.m. Singapore time. The contract is set for a 6.2 percent weekly loss, the biggest for the most-active contract since July 2009.