Dec. 12 (Bloomberg) -- Cotton fell to a 15-month low after European Union leaders failed to contain the region’s debt crisis, while a rising dollar cut the appeal of commodities as alternative assets. Orange juice also slid.
Global equities fell and the euro weakened as Moody’s Investors Service said it will review ratings for EU countries after leaders offered few new measures to stem the credit turmoil during last week’s summit. The Standard & Poor’s GSCI index of 24 raw materials dropped as much as 1.6 percent, as the dollar climbed against a basket of six counterparts.
“All commodity markets are worried about what’s going to happen next in Europe,” Sid Love, the president of Joe Kropf & Sid Love Consulting Services in Overland Park, Kansas, said in a telephone interview. “The euro is down, and the dollar rose. So, it’s going to be about outside markets, again.”
Cotton futures for March delivery dropped 3.6 percent to settle at 87.16 cents a pound at 2:45 p.m. on ICE Futures U.S. in New York, the fourth straight decline. Earlier, the price touched 87.06 cents, the lowest since September 2010. The fiber has plunged 40 percent this year.
Orange-juice futures for January delivery slid 2.2 percent to $1.6625 a pound on ICE, after touching $1.635, the lowest level since Oct. 18. The price has fall for five straight sessions, losing 6.8 percent.
On Dec. 9, the U.S. Department of Agriculture boosted its estimate for this season’s crop in Florida, the world’s second- biggest, by 2 percent because of bigger fruit size.
“Dollar strength and increased orange production estimates for Florida” have put pressure on prices, Jack Scoville, a vice president at Price Futures Group in Chicago, said in an e-mailed report.
Brazil is the top citrus grower.
--Editors: Millie Munshi, Daniel Enoch
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