About Cotton
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Cotton Home » Cotton
History

Cotton has been used by our ancestors for at least 5,000 years . Although cotton's economic role has diminished over the last century, it is still an extremely important commodity in today's economic picture. Cotton has the ability to grow anywhere that has ample soil moisture and at least 200 frost free days per year. Droughts and competition with other crops for land can cause extreme volatility in cotton futures prices.

Characteristic

Cotton is a natural fiber of vegetable origin, like linen, jute or hemp. Mostly composed of cellulose (a carbohydrate plant substance) and formed by twisted, ribbon-like shaped fibres, cotton is the fruit of a shrubby plant commonly referred to as the "cotton plant". Cotton is a basic crop that is a major input for the textile, agriculture, and food industries. 64 percent of cotton is used for apparel, 28 percent for home furnishings, and 8 percent for industrial products. In the US, $120 billion of business revenue is stimulated by cotton.

Uses
  • Wearing apparel,
  • Home furnishings,
  • Industrial uses (such as medical supplies).
  • Professional garments (about 5% of cotton fiber demand).
Export and Import
  • The world cotton area and production are estimated at around 30-31 million hectares and 20 million tons respectively. 
  • The biggest cultivators of cotton are America, India, China, Egypt, Pakistan, Sudan and Eastern Europe, with China, US and India being the three largest producers of cotton. 
  • US has a considerable share in world exports. India and China both fall short of their domestic requirement and are net importers. 
Among the consumers China leads the way being followed by India, Pakistan, US and Turkey.  

Factor Affecting:


The price of cotton is influenced by
  • Weather
  • Disease
  • Demand and Supply
  • Productivity
  • Geopolitical condition
  • Natural calamities

Why trade cotton through NDEX:

Contract size: Regular (10000 kg)
Low transaction cost: Fixed spread of NPR 0.1 per 1 KG
Generous leverage: On all products that are clearly detailed on the trade.
Initial margin: Rs.90000 (Regular)
Hedging capability: Can take long or short position from same account
Months: Feb, Mar, Apr, May, Sep
Season: Sep to April

Trading time:

Daily Open Time 6:45:00 AM
Daily Close Time 00:14:59 AM

Conclusion

Cotton's long and varied history makes it one of the world's most intriguing and enduring commodities. In the years ahead, U.S. subsidies, China's insatiable demand and ongoing water shortages will continue to play significant roles in cotton's advancement. The goal of the individual trader is to understand these fundamental factors enough to make intelligent trading decisions
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