In its monthly World Agricultural Supply and Demand Estimates report the USDA lowered its global cotton demand outlook by 2.6% from a month earlier. As a result cotton futures fell to their lowest level in 2 weeks having declined by nearly 14% in the past 4 weeks.
Crude futures fell in Asian trade, extending losses from European and US sessions. A drop in Chinese export growth from 15.9% in October to 13.8% in November added to the downward pressure on prices.
After rising by over $1/bbl in late Friday on hopes that the Eurozone was tackling its debt problems and improved economic sentiment in China and the US, crude futures fell in Asian trading, losing most of Fridays gains.
Cotton prices continue to fall in Asian trading this morning continuing the trend set in US markets on Friday.