By Sonja Elmquist March 19 (Bloomberg) -- Cotton futures declined as a rally by the dollar eroded the appeal of commodities as alternative investments. The greenback rose as much as 0.8 percent against a basket of six major currencies. The Reuters/Jefferies CRB Index of 19 raw materials slipped 1.1 percent, the most since Feb. 25, and gold had the biggest drop in six weeks. The Standard & Poor’s 500 Index also slumped. “The outside markets have more influence on cotton than its own fundamentals,” said Rogers Varner, the president of broker Varner Bros. in Cleveland, Mississippi. “Some cotton traders are watching the price of gold being down $20 and the stock market being down.” Cotton for May delivery fell 0.03 cent to 82.18 cents a pound on ICE Futures U.S. in New York. This week, the most- active contract gained 2.1 percent as rising global demand depleted inventories. The price has jumped 92 percent in the past 12 months. The U.S. is the world’s biggest exporter of the fiber. To contact the reporter on this story: Sonja Elmquist in Chicago at selmquist@bloomberg.net.

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