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imageNEW YORK: ICE cotton continued its slide on Thursday during a broad-based sell-off as the US Federal Reserve's plan to ease its stimulus program and weak Chinese economic data prompted concern over prospects for global economic growth.

The benchmark December cotton contract on ICE Futures US fell 1.24 cents, or 1.4 percent, to 85.36 cents per lb, down for the fourth straight session and headed for the third-month contract's biggest weekly loss since June 2012.

The Fed's plan to pare down the fiscal stimulus prompted the US dollar to rally and commodities markets to tumble.

Commodities fell the most in a year and a half, and financial markets tumbled.

Chinese economic data prompted worry about slowing factory activity in China, the world's top market for many commodities, including cotton.

"From a macro standpoint, there's not a whole lot of good news. What the Fed said has everyone concerned," said Sharon Johnson, a cotton specialist with Knight Futures.

The December contract settled between the 100-day moving average at 85.21 cents per lb and the 50-day moving average at 85.39 cents per lb, seen as levels of technical support.

Fiber has posted losses each session this week as investors liquidated long positions, dealers said.

Open interest totaled 173,371 contracts on Wednesday, down 2,625 lots from the previous session and 7,186 lots from Friday, the most recent ICE data showed.

Recent rains in Texas, the biggest producing state in the United States, have eased concerns over upcoming supplies from the world's top exporter of cotton.

US weekly export data that showed a 19-percent drop in exports in the week ending June 13 from the previous week, was weaker than some expected and added pressure, dealers said.

Exchanged stocks totaled almost 551,000 bales on Wednesday, the most recent ICE data showed, the most since June 2010.

Another nearly 62,000 bales awaited review by the US Department of Agriculture.

The increase in certified stocks helped ease concerns over near-term supplies ahead of the July contract's expiration on July 9, dealers said.

The front-month July contract closed down 0.48 cent, or 0.6 percent, at 84.92 cents per lb.

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