July 6 (Bloomberg) -- Cotton declined for the fifth time in six sessions on improving prospects for crops in the U.S., the world's biggest exporter. Orange-juice futures fell the most in six weeks.
Drier weather in coming weeks should help crop development in Texas, the biggest cotton-growing state, according to Roger Haldenby, a vice president of operations for Plains Cotton Growers Inc. in Lubbock, Texas. U.S. planting probably jumped 19 percent this year, the biggest gain in four years, the U.S. Department of Agriculture said June 30.
"Planting conditions have been very good with beneficial rainfall," said Roger Haldenby, a vice president of operations for Plains Cotton Growers Inc. in Lubbock, Texas. "The weather heading into July is supposed to be drier and very positive."
Cotton for December delivery slipped 1.21 cents, or 1.6 percent, to 74.32 cents a pound on ICE Futures U.S. The price has dropped 15 percent since reaching a two-year high of 87.1 cents on April 26.
Farmers planted 10.909 million acres of cotton this year, up from 9.15 million last year, the USDA said June 30.
Prices also are falling on concern that slowing economic growth in China and the U.S., or another recession, will curb demand for textiles as cotton production rises, said Sharon Johnson, a senior analyst at First Capitol Group LLC in Atlanta.
"Consumption concerns and a potential double-dip in this economy are keeping cotton prices down," Johnson said. "When consumers hear this kind of news, they stay home from the mall."
Slowing Growth
In China, the world's biggest user of cotton, manufacturing slowed more than forecast in June, a National Bureau of Statistics report showed July 1. The government's Purchasing Managers' Index declined for a second month in June, falling to 52.1 from 53.9 in May.
As the outlook dims for consumption, farmers worldwide may get the highest yields ever this year, with ideal weather in Texas and India, Johnson said. India is the second-largest producer and exporter of cotton.
Global yields will rise to 768 kilograms (1,693 pounds) per hectare (2.471 acres) in the year starting Aug. 1, up from 739 kilograms estimated this season, according to the USDA. The record was 794 kilograms in the year ended July 31, 2008.
India's monsoon, which accounts for more than 70 percent of annual rainfall, covered the entire country nine days ahead of schedule today. The monsoon usually blankets the nation by July 15.
In another ICE Futures market, orange juice for September delivery fell 4.5 cents, or 3 percent, to $1.466 a pound, the biggest decline since May 25.
