Cotton

The white material made of fabric is known to us as cotton, which has been grown in India for more than 6000 years. The extract is extracted from the cotton plant and is usually used as an ideal method for heating, especially in subtropical climates. The leaves are divided into three parts and come with cylindrical seeds where the cotton fibers bloom and are later used to prepare cotton and cotton fabric as well. Cotton is the fiber seed extracted from Cotton plant. Cotton fibers are separated from the seeds during a process called a syringe. Several types of cotton are grown in different parts of the world. Cotton grown on highlands is the most common type of production in the world. Other species include Asian cotton, Egyptian cotton, American Pima cotton, and the island. It is a cotton plant, also derived from cottonseeds. Cottonseed oil is edible oil extracted from cottonseeds.

Cotton is mostly produced in tropical and subtropical regions. Cotton is mainly used in textiles. The main producers of cotton are the United States, China, India and Pakistan. These countries represent more than two-thirds of the world's cotton production. While the United States is the world's largest producer, it is important to note the increase in cotton production in India, which has seen cotton production rise to challenge the United States. This is coupled with increased area in the United States for the cultivation of some of the most popular grains, namely maize, wheat and soybeans.

While these four countries are the largest producers, some of these countries themselves largely meet local demand for their own products. The textile mills in these countries buy cotton and then sell it abroad as manufactured materials, mainly to the United States. It is important to be aware of some of the less productive countries that have a greater impact on export markets, such as Uzbekistan and Brazil. In addition, it is worth noting that the United States is the largest exporter of cotton, with China being the largest importer of the crop.

Some key reports to look for include cotton and wool forecasts from the Department of Economic Research of the US Department of Agriculture. As with all light crops, weather is an important factor that can greatly affect supply and therefore prices. The bad weather presented by these three crops may be hindered or damaged, while good weather is likely to increase supply.

Trading in the cotton

Cotton market as a commodity with many advantages, strong, has the ability to absorb and last for a long time, and is used in the manufacture of clothing and fabrics, which is the most used material for the textile and clothing industry in the world to this day. Cotton is mainly traded on the New York Stock Exchange (NYBOT), and is also located on other major exchanges, the Zhengzhou Commodity Exchange (ZCE) and the Intercontinental Exchange.

Factors influencing cotton prices

Climate and weather variability are the most important factors affecting the price of cotton, similar to other agricultural assets. When trading cotton, you should consider the floods and dehydration that can occur. Cotton can also be affected by competing textiles such as wool, which is considered its first competitor, and some synthetic fibers such as polyester.

For example, it is easy to get polyester and it is also cheaper, which can lead to a lower cotton price than that of cotton futures in 2003.

Countries that contribute mainly to the production of cotton and its trade are: First place comes China, which produces 6,532 thousand tons, and second comes India, which produces 6,432 thousand tons and the United States produces more than 3,553 thousand tons per year. The most consuming countries of cotton are China, where its domestic consumption is estimated at 35,000 (100,480 pounds or a pound) per year. India consumes 24,000 and Pakistan consumes 10,200. It is said that these countries are the most consumed cotton, but they export an important part to Europe and various countries around the world.