Cotton prices at 10-year high

Cotton prices are at a ten-year high and a market analyst suggests there’s room to go higher.

Global Commodity Analytics and Consulting president Mike Zuzolo says once futures eclipsed 2014 levels, fund buying picked up.

“And that, along with some of the supply (and) demand fundamentals like we’ve been dealing with in other commodities (like) coffee and even crude oil, these two things I think came together and allowed the market to rally about 20 percent since taking that resistance level out back in September.”

He tells Brownfield investment funds tend to trade soft commodities like cotton, coffee, cocoa, and sugar together.

“And oftentimes it’s not odd at all to see one commodity, and I think coffee is the main driver here, that both the supply and the demand have come together and helped push cotton up in part due to this fund buying.”

Zuzolo says with cotton at lofty prices, demand rationing has begun. 

He also sees an impact on corn, soybean, and wheat production for next year as cotton competes for acres. 

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