Cotton futures fell to a one-and-a-half-month low on Monday following a plunge in Chinese markets, on lingering fears that the coronavirus epidemic could dent the world's second biggest economy, which is also the largest consumer of cotton.

Cotton contracts for March shed 0.49 cent, or 0.73%, at 67.01 cents per lb by 1:49 p.m. EST (1848 GMT). Prices earlier declined to 66.75 cents per lb, the lowest level since Dec. 19. “The Chinese markets have reopened and faced a pretty steep sell-off which was transmitted over to the cotton market," said Bailey Thomen, cotton risk management associate with INTL FCStone.

The coronavirus outbreak “could be affecting economic growth, shipping of cotton, and shipping of all commodities as part of the Phase 1 deal could slow down. Everybody is keeping an eye out to see how it's being handled."

Investors erased $420 billion from China's benchmark stock index, sold the yuan and dumped commodities as fears about the spreading coronavirus and its economic impact drove selling on the first day of trade in China since the Lunar New Year. The death toll in China from the newly identified coronavirus rose to 361 as of Sunday.

Also weighing on cotton prices was a firmer dollar, with the dollar index up 0.4%. A stronger greenback makes commodities priced in dollars, such as cotton, expensive for holders of other currencies.