Cotton posted the second straight decline on Friday on concerns that U.S. recession may reduce demand, and on signs that textile mills are reducing purchases.

Cotton futures for May delivery dropped by 4.7 percent, or 4 cents, to 81.28 cents a pound on ICE Futures U.S., formerly the New York Board of Trade.

Cotton prices increased to 92.86 cents a pound on March 5.

The exchange limit was increased to 4 cents from 3 cents on March 4 after the two futures contracts with the highest open interest closed at 84 cents or higher in the previous session.

The Labor Department said the U.S. lost 63,000 jobs in February.

The Agriculture Department said upland cotton export sales decreased by 50 percent to 97,300 bales in the week that ended Feb. 28.