2014.07.0401:07:53UTC+00Surprise cotton weather makes futures prices plummet

Cotton has made a complete turnaround by spiking up only to stumble back down in a span of just a few months.

Futures contracts for a pound of the commodity reached a two year high in March earlier this year of 97.35 cents on the belief that stockpiles were headed to its lowest levels in two decades. A primary contributor for its fast climb at that time was a drought in the planting regions of the United States that threatened to disrupt supply.

Since then, however, prices of corn futures have dropped by 26% behind the coming of copious amounts of rainfall across the top growing region of Texas. It was trading at 72.06 cents today on the New York-based ICE Futures US exchange and is expected to fall further to 67.7 cents by the end of the year according to the results of a Bloomberg survey.

With its next harvest expected to be bountiful enough to push past the global supply surplus of 102.71 million bales and add on to record high inventories, cotton is on its way to solidify its title of having the greatest decline among commodities this year.

Behind the double amount of rainfall up until last month promoting growth of the crop, the US Department of Agriculture has increased by 3.4% its prediction of production levels to 15 million bales with Plexus claiming it may even rise above 17 million. The US is expected to have their largest corn stockpile in six years by the end of July in 2015.