Over the past few months worldwide supplies of cotton have been high as we have seen a drop in demand. Ending stocks for 2012 look to be 79.6 million bales with 47% of this stored in China at 37.6 million bales. For 2013 demand is expected to rise and we could see production drop. All signs for higher prices. And let’s not forget “big money.” This week’s release of the USDA’s WASDE report will shed some light on cotton to be released on Jan. 11. China and India are the largest worldwide cotton producers.
To read my market views daily you can follow me on Twitter at http://twitter.com/TrendsinFutures