Cotton fell by the exchange maximum, capping the biggest weekly slump since June, amid concern that demand will ease in China, the world’s biggest consumer. Coffee, cocoa and orange juice also slid. China’s central bank may increase rates within weeks in a bid to cool inflation, according to Bloomberg News survey. Raw materials tumbled today on concern growth will cool in the Asian country, the world’s biggest user of many commodities. Prices also fell after ICE Futures U.S. lifted the margin requirement, or amount of money traders must keep on deposit. “Raising rates has a negative psychological impact and will put a brake on the rising demand,” said Keith Brown, the president of Keith Brown & Co., a brokerage in Moultrie, Georgia. “Also, ICE raising margin requirements is very bearish.” Cotton futures for March delivery declined 5 cents, the most allowed by ICE, or 3.6 percent, to $1.3418 a pound at 12:28 p.m. in New York. The price lost 5.7 percent this week, the most since the week ended June 4. ICE increased margins on cotton trading on Nov. 10 after prices and volatility surged. Coffee, Cocoa Arabica-coffee futures for March delivery dropped 6.15 cents, or 2.9 percent, to $2.0335 a pound in New York. In London, robusta-coffee futures for January delivery fell $56, or 2.9 percent, to $1,875 a ton on NYSE Liffe. Cocoa futures for March delivery declined $87, or 3 percent, to $2,779 a ton in New York. In London, cocoa futures for March delivery lost 44 pounds, or 2.4 percent, to 1,827 pounds ($2,948) a ton. Orange-juice futures for January delivery slid 0.4 cent, or 0.3 percent, to $1.56 a pound in New York, the third straight loss. To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

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