As a general perspective, the cotton market has experienced a strong positive trend in 2016. The starting point was 61.49 level at the beginning of year, and followed a fluctuating period for seven month. At 31st July, the parity tested 76.78 which was the highest level of the year. With the last days of year, the cotton prices have decrease a bit, but it’s continuing its process over the 70.00 price level on the global forex market.
Undoubtedly climate is influential on almost all kinds of agricultural products. Especially in recent years, the intense feeling of climate change, which is expressed as global warming, affects the people who cultivate agricultural products such as cotton and the economy of the country where they live in parallel to the place of many countries. Because cotton is a delicate agricultural product that can easily damage due to rain at certain times and at other times, and especially when it is not. For this reason, annual production, in particular how the climate is watching in the year is gaining importance. It is not hard to say that a factor such as climate is something that is not directly driven by people, and that there is always an uncertainty in cotton markets, and therefore investment opportunities.
For the first 2017 forecasts approach, the parity may test 74.20 level as resistance level and 68.80 as support level for the first weeks of new year.
- Date: 12 December 2016 Mon 02:39
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