Cotton traders rest convinced that cotton represents a reason to invest in raw materials. In recent months its value has increased by 9%, which makes it the most effective fiber to do business.
Cotton has proven to be a surprisingly profitable business in the last 12 months. A sample of that lays in the price action of this year. This due to the forecast of the dry climate to the West of Texas and by the preoccupation of strong demand of the fiber before the harvest 2017 – 2018 in the US.
Cotton production in the US
According to published data by the USDA. The US market expected an increase in the US production of 13.75 million bales. Exceeding the 13.5 million bales in December.
However, this market has also seen its genetic modifications, for example, the so-called transgenic. This type of cotton is highly resistant against the storms, reason why for some cotton traders it is more profitable because of the few losses.
Cultural borders do not exist in this market. A country like Colombia can do business with China, and although the two countries have very marked cultural differences, such as customs, beliefs and days of celebration, these facts do not prevent them from marketing products such as cotton.
For cotton traders investments to this market are generally millionaire, which also makes this a more stable and secure market. For example, in Paraguay, the State is allocating 100 million in cotton subsidies.
So, due to the bad weather, the high demand, the transgenic crops, the cultural differences or the millionaire investments made by countries in this market, cotton traders find this a proven fact to consider it a good investment.
This important fiber has shown an impressive stability in the last 12 months. So if we are hesitant to invest in raw materials, we can do so with confidence in the Cotton.
For new cotton traders, where to start investing.
The best way to do invest in cotton will be through Future Cotton contracts. Some Brokers have at your disposal the best opportunities in the sector with very attractive prices and within the reach of any interested person.
For this, you must first fill out the form on the registration page. Thus, qualified financial advisors will guide you thru your decisions. Which will allow you to take full advantage of the soft and lucrative business? To help you make you a successful cotton trader.