Oct. 1 (Bloomberg) -- Cotton futures fell, snapping the longest rally in six months, on concern that a U.S. government shutdown may cut demand for commodities. Cocoa and orange juice also slipped, while sugar and coffee advanced.
The federal government’s first partial shutdown in 17 years began with the new fiscal year at midnight. The shutdown would cost the U.S. at least $300 million a day in lost economic output at the start, and the impact may accelerate if it continues, according to IHS Inc., a market-research firm. Last month, cotton rose 4.5 percent.
“The government shutdown is affecting cotton and most other commodities to the downside,” Michael Smith, the president of T&K Futures & Options Inc. in Port St. Lucie, Florida, wrote in an e-mail today. It “is a great excuse for the cotton bulls to lock in some of the profits that they have seen over the last 30 days,”
Cotton for delivery in December lost 0.7 percent to settle at 86.6 cents a pound at 2:30 p.m. on ICE Futures U.S. in New York, after declining as much as 2 percent. Futures rose in the previous five sessions, the longest rally since early March.
Cocoa futures for December delivery dropped 0.2 percent to $2,634 a metric ton in New York. Orange-juice futures for November delivery fell 2.6 percent to $1.279 a pound.
Raw-sugar futures for March delivery climbed 1 percent to 18.32 cents a pound on ICE. Arabica-coffee futures gained 0.4 percent to $1.141 a pound.
--Editors: Thomas Galatola, Patrick McKiernan