Cotton is a commodity and is used in the fashion
industry to produce close etc.
How is the
price set in the cotton market?
The price is set by demand and supply; but there are
restrictions in the market price.
Government
policies
One restriction is government policies; in China
The price of cotton produced in China
The world price is set by local prices; the local
prices differ from one country to another country.
The price
on cotton and competitive products
Another restriction is the price and competitive
products; if the price for cotton is high the farmers will produce cotton; as
the price is set by demand and supply; the price will start to fall cause to
the higher rate of farmers producing cotton; the lower price of cotton makes another
product more profitable to produce and the production of cotton will fall and
the price of cotton will start to increase.
Analyzing
the price chart for cotton
The price for cotton has been falling since February 2011;
the reason is the production of cotton has been high. At the present is the
market not short on cotton.
CFD
Trading and Cotton
Cotton is in the section commodity on the online
trading platform; the price range has the last year been among 95 and 86 dollars.
