Cotton futures traded on the ICE Exchange in New York tumbled more than 4% to their low-trading threshold on Thursday, as the dollar rose as growing economic concerns soured the fiber demand outlook.
The most active December contract fell 5 cents, or 4.4%, to 108.21 cents a lb. It traded within a range of 108.21 cents and 113.2 cents per lb.
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The contract had risen about 17% in August, its best monthly performance in more than a decade, amid supply concerns fueled by dry conditions in key growing areas.
Macroeconomic headlines are weighing on cotton, along with the dollar’s strength, said Louis Barbera, partner and analyst at VLM Commodities Ltd.
The dollar hit a 20-year high, making natural fiber more expensive for customers holding other currencies.
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