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A Beautiful "Turn Around" Of Cotton.

2010/8/18 14:32:00 74

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cotton

Little attention has been paid to it, probably because no one will put cotton on the table or use it to make cars.

As a commodity, the fluctuation of cotton prices is not very intense, and this inexpensive commodity can always find cheap alternatives.

But recently, some clothes.

Retailer

It threatens to raise prices and blame it on the rising cost of cotton. Cotton prices may soon rise to the highest level in 15 years.

Unlike wheat and barley, the rise in cotton prices is not just due to the frenzied weather this summer.

Indeed, most parts of Pakistan, the world's fourth largest cotton producer and second largest importer, suffered flooding.

But data from the US Department of agriculture show that cotton prices have risen steadily for 18 months after spending for more than 4 consecutive years.

The US Department of agriculture predicts that this year's cotton inventory will only be about 40% of the annual demand, the lowest level in 15 years.

Earlier, although the US government provided a huge subsidy to cotton, many American farmers still grew from them.

cotton

The flower turned to planting soybeans.

Price is a factor: in addition to the brief surge of commodity bubbles in 2008, cotton prices fluctuated mostly in the last 10 years in 80s.

Soybeans increased by about 50% and were easier to grow.

However, the US farmers may have responded to the rise in cotton prices.

The United States Department of Agriculture says the planting area of the United States has increased by 20% this year.

Because of India's restrictions on exports and flooding in Pakistan, cotton growers in the United States may have a lot of money this year.

But the additional supply is at a time when the global recovery is weakening, and the controversy over the legitimacy of us subsidies remains undecided.

Cotton growers (and cotton bulls) should seize the opportunity to make money.