Cotton

Types of Cotton

Different types and kinds of Cotton are commercially grown in various parts of the world. The basic characteristics of types of cotton may vary. These variations in different cotton fibers occur because of the growing conditions including soil, climate, fertilizers etc.

Kinds of cotton are grown on a large scale for use in home furnishings, textiles, apparels and industrial applications.

Quality
The quality of various cotton fibers is determined and depends on:
• Color or the degree of whiteness
• Length or the staple
• Fineness of fiber
Major Kinds of Cotton
Different types of cotton is often identified by the name of the region or the country where it is produced. Some of the most popular types are:
• American Pima: This popular type of cotton is grown in Texas, New Mexico, Arizona and Southern California. . The fiber if fine, strong, silky, lustrous and creamy white in color. The cotton type is widely used for different kinds of apparel and home furnishing fabrics.

• Egyptian Cotton: This type of cotton fiber is light brown in color, fine, strong and widely sold all over the world. It is used in applications where fine and strong yarns are required. Egyptian cotton is often used for manufacturing bead sheets, cushion covers etc.

• Asiatic Cotton: This type of fine quality cotton is produced in countries like India, China and the Near east. The cotton is often used for apparel home furnishing and surgical supplies.

• Upland Cotton: This type of cotton in widely grown in different parts of America. It is often used wholly or as a component of blend with man made fibers, for use in different industries.

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Rakesh P writes on diverse topics online like Business-Industrial Mechanical, Fashion, Clothing, Types of Natural and Man-made fibres. You can contact him at rakeshp@ynfx.com

http://www.yarnsandfibers.com

What Moves the Cotton Futures and Options Market?
By Alex Ramey

Basic Fundamentals

When you are considering a trade in the cotton #2 market some of the basic fundamentals that you should consider are:

1. The relative price of competition crops. Farmers are going to plant what they feel will offer them the best return on their investment. If soybean prices are high, and cotton prices are low, they will plant more soybeans, and vice versa. Therefore, by looking at the relative price of competing crops you can attempt to estimate prospective plantings acreage which will affect supply.

2. The relative price of synthetic fibers that are petroleum based. Textile manufactures are going to use fibers that will offer them the best return on their investment. If synthetic fiber prices (polyester, rayon, or nylon) are high compared to natural fibers (cotton) they will use more cotton, and vice versa. Therefore, by looking at the relative price of competing fibers you can attempt to estimate end usage which will affect demand.

3. The price of the dollar and it's effect on exports. Recently the U.S. dollar has been weak against other major world currencies. This has helped U.S. exporters by making it's goods and services more competitive abroad. It is important to follow the price of the U.S. dollar because of the impact that it has on exports.

4. Asia Asia has emerged as an economic powerhouse that effects all commodity prices. It is especially important to look at Asian supply and demand when trading the cotton market. China is by far the largest consumer of cotton. China is the largest producer of cotton. India is the second largest producer of cotton. The United States is the third largest producer of cotton.

These are just some basic fundamentals to keep in mind when you are considering a trade in the cotton #2 market. There are many other factors such as weather that were not discussed above that can have a major impact on it's price movement. Therefore, before opening up a commodity account to trade cotton #2 you should consult with a licensed commodity broker that follows the cotton #2 market to discuss investment strategies.

There is a high degree of risk involved in trading the commodity markets. It is not suitable for everyone.

Alexander B. Ramey

Senior Broker

(877) 880-8490

FGI Trading Group, Inc. http://www.fgitrading.com

Article Source: http://EzineArticles.com/?expert=Alex_Ramey http://EzineArticles.com/?What-Moves-the-Cotton-Futures-and-Options-Market?&id=1423824