By Carolyn Cui

Cotton prices fell on Thursday, as traders rushed for the exit after a cotton trade group upwardly revised its forecast for global output.

Cotton futures for May delivery tumbled 1.6% to 60.64 cents at the ICE Futures U.S. exchange. Prices for the contract had reached a two-month high early this week on bullish fundamentals.

Cotton prices had rallied in recent days as fundamentals have turned supportive of late, fueled by a surprisingly strong reading on the U.S. export sales, a modest setback in Chinese cotton production and drawdown in ending stocks. The market was also supported by the increasingly risk-taking sentiment and a broad rise in commodity prices.