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Record Cotton Harvest Seen Cutting Prices for Gap: Commodities

Record cotton crops from India to Brazil are exceeding demand by the most in more than two decades, driving prices lower for Gap Inc. and Abercrombie & Fitch Co.

Farmers will reap 123.6 million 480-pound bales in the 12 months ending in July, exceeding demand by 15 million bales and expanding stockpiles by 32 percent to the second-biggest on record, the U.S. government estimates. Futures will extend this year’s 4.2 percent retreat in New York by a further 15 percent to 75 cents a pound by Dec. 31, according to the median of 15 analyst estimates compiled by Bloomberg.