By admin       2018-06-27

Another milestone reached in the recovery since March 2016.The June WASDE was supportive of the price of cotton.Tariffs and a pattern of corrective price behavior take cotton lower.A deal between the U.S. and China could push cotton to $1 per pound.Economic growth continues to underpin demand.This idea was discussed in more depth with members of my private investing community, Hecht Commodity Report.Cotton is one of the most volatile commodities that trade on the Intercontinental Exchange. In the soft commodities sector, cotton is the only raw material that is not a food, but it is a luxury commodity as the fluffy fiber hugs our bodies when we sleep on sheets and comforters and put on many of the clothes we wear each day.In 2011, a shortage of cotton drove the price to an all-time peak of $2.27 per pound. Before 2010, the fiber never traded above the $1.1720 per pound level dating all the way back to 1972. After reaching the lofty level in 2011 which created demand destruction in the cotton market, the price fell all the way down to 55.66 cents in March 2016. Since then, the price cotton has been recovering making higher lows and higher highs, and in June it reached its latest milestone on the upside as the price rose above the 90 cents per pound level for the first time since 2014 when it was on its way down from the record level in 2011.

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