\n\tBy Jonathan Barratt<\/span><\/div>\n

\n\t <\/div>\n

\n\tCotton has had a significant bounce from the lows and as we have had this on the radar for sometime it is important to keep everyone updated. Generally, cotton responds to economic news, production and consumption data; it is similar to copper where investors see its price action as a litmus test for the global economy.<\/div>\n

\n\t <\/div>\n

\n\tThe market has dropped from US 2.20 a pound in March 2011 to a low of US 0.9600 late October. This move has been on the back of better growing conditions in Brazil, Australia and a sizeable increase in production around the world this has helped to compensate the market for the disastrous effects of the Texas drought. Texas produces 50% of the US cotton and the US grows between 18 to 25% of the world’s cotton. This year US exports are expected to drop 20% with its lowest global trade share of 32% dropping to a decade low.<\/div>\n

\n\t <\/div>\n

\n\tGlobally, we can see an increase on exports of about 3% compared to the same period last year which suggests that domestic consumption remains strong. However the curve ball comes from China which used to be self sufficient in the cotton production verses consumption. China is currently the world's largest importer and consumer, its 2011\/12 imports are forecast at 14 million bales, this is up 17% from last year and the second highest on record. In September imports were up 26%.<\/div>\n

\n\t
\n\tIf you combined the increased demand from China and renewed optimism in the markets then we can suggest that we remain at important cross roads for the market. We continue to look for dips to accumulate.<\/div>\n

\n\t <\/div>\n

\n\t $\"\"$ <\/div>\n

\n\t <\/div>\n

\n\tProduced by Jonathan Barratt<\/span> direct from the trading desks of Commodity Broking<\/span> Services, Barratt's<\/span> Bulletin provides expert analysis of commodity markets, global indices and foreign exchange movements. Click here <\/a>to take a no obligation 21-day trial to Barratt's<\/span> or to learn more visit www.barrattsbulletin.com<\/span><\/a>. Content included in this article is not by association necessarily the view of FNArena<\/span> (see our disclaimer).<\/em><\/div>\n
\n\t $\"\"$ <\/p>\n
\n\tThis report is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, products, securities or investments. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote products or any other products, securities or investments. This report does not purport to make any recommendations or provide any investment or other advice with respect to the purchase, sale or other disposition of products, securities or investments, including, without limitation, any advice to the effect that any related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in securities or investments should not be made in reliance on any of the statements in this report. Before making any investment decision, prospective investors should seek advice from their financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.<\/i><\/p>\n
\t <\/p>\n","protected":false},"excerpt":{"rendered":"
Jonathan Barratt of Barratt’s Bulletin suggests the cotton price is at a crossroads and advises accumulation.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[32],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59095"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59095"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59095\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}