Cotton prices set record high on supply fears

AP News
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Posted: Oct 15, 2010 4:37 PM
Cotton prices set record high on supply fears

Cotton is retreating after setting an all-time high on fears of tight supplies amid strong worldwide demand.

Cotton for December delivery fell 5 cents to settle at $1.0987 a pound after hitting a record high of $1.1980 a pound earlier Friday.

Cotton's three-month rally has been fueled by a combination of factors such as poor weather in some producing regions around the world and a weaker dollar.

That is boosting U.S. exports of stocks on hand with farmers in the midst of the current harvest.

Most commodities are down as the dollar grew stronger against other currencies. Since commodities are priced in dollars, a stronger dollar makes them less attractive to traders who use foreign currencies.