Cotton prices continued to decline today for a sixth straight session, on signs that global demand will continue to slump.
 
Analysts expect cotton’s share of the global market for clothing, home furnishings and industrial products to fall to 30% by the end of the year. This morning, cotton for October delivery fell 4% to 97.3 cents per bale. Helping to push the price of cotton down this week was the news that output in India, the world’s second-largest grower, may climb to a record number for a second year in a row after growers accelerated their planting as a result of the delayed start to the monsoon season.
 
The monsoon, which makes up more than 70% of India’s annual rains, is expected to increase, which will help increase cotton stocks and potentially push prices lower. India currently holds a curb on its cotton exports, however a bigger harvest may prompt them to scrap the curb, which could potentially extend a slump in cotton prices. The strengthening dollar has also aided the decline in cotton as the debt crisis in Europe and the US has urged investors to move into Treasury bonds.