How to invest
What moves the Cotton price?
What should an investor understand about Cotton?
Answers
ET
Cotton is priced by supply and demand in a global market, with weather, inventories and trade policy the dominant short-term drivers.
Our data shows Cotton at 88.11 per pound.
Its 52-week range is 60.71 to 88.88, putting the current level about 97.3% of the way up that band.
ET
Exposure for ordinary investors is almost always through futures-based funds, which carry a roll cost when longer-dated contracts trade above nearer ones. Over multi-year holding periods that cost, rather than the commodity price, often explains most of the shortfall against the headline spot move.
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