By Sonja Elmquist Feb. 5 (Bloomberg) -- Cotton futures dropped to the lowest prices since November as a rally in the dollar eroded the appeal of commodities and slumping equity markets revived concern that the economic recovery may stall, slowing demand for clothing. The dollar jumped to the highest level against major currencies since July. The Standard & Poor’s 500 Index fell, after a 3.1 percent drop yesterday that was the biggest decline since April, and the Reuters/Jefferies CRB Index of 19 raw materials slipped to the lowest level since October. Cotton prices have plunged 13 percent from an 18-month high on Jan. 4. “People are scared from yesterday,” said Mike Stevens, an independent analyst and trader in Mandeville, Louisiana. “I have low confidence on saying anything fundamental is going to affect this market right now. Cotton can’t go anywhere by itself.” Cotton futures for March delivery fell 2.37 cents, or 3.4 percent, to 66.62 cents a pound on ICE Futures U.S. in New York, after touching 66.55 cents, the lowest price since Nov. 6. Futures dropped 3.5 percent for the week, the fifth straight decline. Prices jumped 54 percent last year as adverse weather hampered harvests and damaged crop quality in the U.S., the world’s biggest exporter of the fiber. The National Cotton Council is scheduled to publish its annual survey of U.S. planting intentions today on its Web site. In another ICE market, orange-juice futures for March delivery fell 3.3 cents, or 2.4 percent, to $1.3395 a pound, after touching $1.334, the lowest price since Jan. 20. The contract slipped 1.6 percent for the week, the second straight decline. To contact the reporter on this story: Sonja Elmquist in Chicago at selmquist@bloomberg.net.

Source