From the San Francisco Chronicle:

Cotton futures in New York tumbled by the daily limit for a second day as investors sold the fiber to lock in profits after prices rallied to an all-time high.

Cotton for March delivery fell 6 cents, the most allowed by ICE Futures U.S., to $1.4812 a pound before trading at $1.482 at 12:48 p.m. in Singapore. The contract reached a record $1.5912 on Dec. 21.

"At this high level, we expect demand to start to be rationed somewhat," Wayne Gordon, a senior analyst at Rabobank Groep NV, said by phone from Sydney.

Cotton Falls by Daily Limit as Investors Sell Ahead of Holidays