Cotton Heads for Worst Month Since 1986 as Economy Hits Demand

Cotton headed for its worst month in more than three decades as fears of a global economic slowdown threatens to stifle demand for apparel and other goods.

While supply concerns are mounting, cotton futures traders have been focusing more on the weak outlook for demand amid prevailing bearish macroeconomic sentiment, said Nick Gentile, partner for NickJen Capital Management. Higher interest rates are likely to reduce consumers spending on apparel, while recent strength in the US dollar could curb the global appetite for the country’s exports.