Getting Bullish On Cotton

This is the time to get bullish on Cotton. This past year cotton has gone sideways but it seems poised for a big breakout. Last years high corn prices had farmers shifting acreage in favor of corn and away from other crops like cotton, while record-high wheat and soybean prices this year are likely to continue that shift.

Cotton Supply

Cotton supply isn’t going to be able to meet demand. According to the National Cotton Council, increased wheat and soybean plantings could reduce cotton 12 percent from last year to 9.55 million acres this year, which would be the lowest since 1983.

Cotton Pricing
cotton futures posted a high of 73 cents a pound in July, and moved as low as 60 cents. December futures could rise to $1 and prices should double in the next month or two. On Tuesday, front-month ICE May cotton futures closed at 71.79 cents a pound.