Cotton prices fell on ICE on Wednesday: the dollar strengthened and stocks fell after data showed US inflation remained high, forecasting the Federal Reserve could raise interest rates further.
May cotton futures fell 2.83 cents, closing 82.87.
The dollar recovered its previous losses and rose 0.2% against rivals, making cotton more expensive for other currency holders.
U.S. CPI data showed that at 6.4% in January, consumer prices rose rapidly in January as Americans continued to bear the burden of higher rent costs.
Sentiment in financial markets as a whole remains weak as investors worry that the Fed may resume its path of raising interest rates this year after data showed inflation remained elevated.
Internationally, official estimates of India’s domestic production and consumption for the current marketing year continue to decline significantly, while analysts at Commerzbank said in a note “The U.S. cotton acreage s …