Commodities@Moneycontrol: Decoding the impact of US-China trade war concern on cotton

As the US is the biggest exporter of cotton and China is the biggest consumer of cotton in the world, a knee-jerk reaction was seen in cotton prices.

Commodity markets have been reacting to the deepening of trade war concerns between the US and China.

Prices of all commodities including crude oil, metals, soybean, corn, wheat and cotton have reacted. .As the US is the biggest exporter of cotton and China is the biggest consumer of cotton in the world, a knee-jerk reaction was seen in cotton prices that spiked 4 percent.

The latest data from the International Cotton Association suggests global output is expected at 25.35 million tonne and consumption at 26.52 million tonne. This means higher consumption vis-a-vis production so the carry forward stock will continue to decline.

Watch Manisha Gupta share an insight into the demand, supply and pricing of cotton.