By Catarina Saraiva Jan. 20 (Bloomberg) -- Cotton prices fell to a two-month low on mounting concerns that the global economy’s recovery will be sluggish. Sugar also declined. Housing starts in the U.S. fell more than forecast in December, government data showed today. The U.S. has lost 7.2 million jobs since the recession began, and economists surveyed by Bloomberg News this month forecast the unemployment rate will average 10 percent this year. China has told some banks to limit lending, and the government may withdraw some stimulus measures. “Cotton is considered an industrial commodity, so when you see economic growth waning, you see less interest in cotton,” said John Flanagan, the president of Flanagan Trading Corp. in Fuquay-Varina, North Carolina. Cotton futures for March delivery slid 0.34 cent, or 0.5 percent, to 71.3 cents a pound at 9:48 a.m. on ICE Futures U.S. in New York, heading for the fourth straight drop. Earlier, the price touched 71.22 cents, the lowest level for a most-active contract since Nov. 16. Before today, cotton rose 46 percent in the past 12 months as adverse weather hampered the harvest and damaged crops in the U.S., the world’s biggest exporter. Raw-sugar futures for March delivery fell 0.1 cent, or 0.3 percent, to 28.88 cents a pound. Earlier, the price reached 29.45 cents, the highest level since Jan. 27, 1981. Sugar has more than doubled in the past 12 months as production dropped in Brazil and India, the largest producers. To contact the reporter on this story: Catarina Saraiva in New York at asaraiva5@bloomberg.net.

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