There is enough cotton warehouses standing in the world for more than 127 billion t-shirts, or 17 for every person on the planet. This is bad news for investors who bet that prices will rise.
Global stocks at the end of this season will be slightly less than last year's record, according to United States Department of Agriculture
Hedge funds raised their bullish bets cotton to the highest in more than a year, but faced the first weekly decline in prices since the beginning of November.
China, the largest consumer in the world, has reduced imports of cotton by more than 30 percent, helping to shrink global trade for the fourth consecutive year
Prices are likely to continue to decrease over the next few months, hope for the rise may come if China's economy showed signs of stability.
E.Dimitrov JrTrader
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.