Cotton is anticipated to be a major bull market for next twelve months. Slow production of cotton has not made any impact on its demand.
Cotton indices are expected to surpass upper forties to mid sixties and may achieve target of eighties before the end of 2007.
Mainly demand for cotton is from China and India. Living standard in rural area is progressing as the people are becoming rich. Cotton is one of the main fibers used in rural areas of India, China and Brazil.
Other bull market ensuing is copper or gold. Cotton price can climb by 300 percent in coming years. If hedge funds start buying cotton at eighties, it will boost fiber price by 900 percent.
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