Discussion

This graph compares the pattern of nearby New York cotton prices (in red) and an index of the U.S. dollar relative to a basket of foreign currencies. Since 2007, the pattern for cotton (and other commodity prices, not shown) is to move in the opposite direction of the U.S. dollar index. This is being driven by speculative money flowing into and out of commodities as influenced by either speculative reward (as in 2007-2008) or current fears of inflation.

Return to Cotton Marketing Planner Newsletter.