The commodity market is in recovery; it is looking for a new balance to meet market requirements. The cotton market has been through a tough time. As seen from the daily chart, the price has fluctuated since the beginning of the year. Understandably, the cotton market has struggled in the COVID-19 pandemic. Will it find a stable trend?
The price had been rising since April 2020. Then significant fluctuations showed up, which was also a signal that the market was trying to get back to balance; however, most commodities were driven by supply and demand. Higher prices as export sales and shipments continue to outpace USDA estimates. Price and production remain challenging.
According to USDA’S June 30 plannings, the intentions report is expected to report U.S. cotton plantings near 11.4 million acres, compared to 12.1 million acres planted in 2020; this points out that the rising trend may continue for next three months. The inflation problem remains; the price of cotton would catch up with inflation. Thus, the rising trend will continue.
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