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Cotton Prices Fall in September as Storm Damage is Assessed

Cotton prices fell by about 4 cents per pound in September, to finish the month at almost 67 cents, about 5.7% lower than at the end of August, according to data from the U.S. Department of Agriculture (USDA).

Uncertainty over the effects from Hurricane Harvey on crops in Texas, where a significant portion of U.S. cotton is grown, as well as on the location of and effects of Irma and other storms, caused cotton price hikes in the first two weeks of the month.

However, damage from the storms turned out to be less than feared, sending prices down again.

The seven-market U.S. average cotton spot price, which ended 2016 at just above 69 cents per pound, has fallen by over 2 cents so far this year.

Revised production forecasts of expected bumper crops in the U.S. and abroad may put additional downward pressure on prices going forward.