Commodity Markets went down to the lowest level of the past 13 years in 2015. Commodity prices got hit by the uneasiness caused by the USD Central Bank's (Fed) increase in interests due concerns over the economies of the growing countries such as China (being the first on the list). Cotton however was one of the few products that presented a successful performance in the weak commodity markets. In the last year where CRB Index lost a value of 25 percent; cotton increased 6 percent in New York maturity operations. As per the month of December; cotton was the only commodity that went up, amongst the 22 products being watched at Bloomberg Commodity index. So, will the cotton show a good performance in 2016 also?
Cotton prices in recent times in New York are moving at the band of 61-63 cent/pound (1 pound=453 gr.). Analysts are predicting the prices will be hovering around this level in general this year; and it might move towards 70 cents towards the end of the year due the reduction done by the production.
