Cotton Prices Fall Despite U.S. Drought

Cotton has failed to perform, with prices falling by 37 per cent over the past 30 days, even as yields are expected to be affected by hot weather and drought this summer in the U.S.

The U.S. is the top exporter of cotton, and Texas accounts for about 50 percent of U.S. output. According to U.S. agriculture department reports, producers intended to plant about 5.5 million hectares of cotton this year—the most in five years and up 25 percent year-on-year. However, a record 30 percent of crops are now expected to be abandoned because of the dry weather.