Cotton's Crash Looks Set to Deepen as Stockpiles Keep Growing
- Analysts expect USDA will boost global crop outlook this week
- Hedge funds are holding a record net-bearish bet as of July 2
A farmer harvests cotton in a field outside Rogers, Texas in 2018.
Photographer: Sergio Flores/BloombergThis article is for subscribers only.
Cotton is in the grips of the bears, and fresh U.S. supply forecasts coming this week will probably keep it there.
Prices tumbled to a three-year low Tuesday amid the outlook for big supplies at a time when consumption growth is slowing and American exports are hurting. Hedge funds are holding their biggest-ever bet that the declines will continue. Meanwhile, traders and analysts expect that the U.S. Department of Agriculture will raise its outlook for domestic stockpiles, with the hoard forecast to reach a 12-year high.