Today's Major Market Move: Cotton Futures Decline 5.4% in Past Week

As the "We're in deflation!"/"You're out of your mind, it's inflation!" argument rages on, part of the case for the deflationary stance is cotton futures. Cotton futures prices are down 60% from the highs of 2011 and in the past week have dropped 5.4% to put it back near a key support level (97-ish).

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Cotton has been the weakest performing commodity this year (of the commodities we track on pikefin), followed by lumber and cocoa.

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According to the International Cotton Advisory Committee, the current cotton surplus is projected to increase next year from 1.9 million tons to 2.3 million. Production gains are expected in Pakistan, Australia and Turkey while global demand is estimated to remain flat.