Global Market report
Copper
There has been a 23% correction in Copper as of the beginning of September. According to Bloomberg this is due to weak performance in equities of developing countries which in turn pushes down the demand for the raw material as the companies will desire less and this is a delayed indicator. Global demand has remained steady with yearly growth of around 4%. This demand for copper is kept strong through demand for mid-range to luxury cars and telecommunications. A further cause of the decline in price is the conditions of China and the United States trading relations calling in to question the demand for the commodity and transactions between these two major economies.
Cotton
The price of Cotton has decreased by 11.24% over the last 3 months. In the past month, speculators have held a net short in this large but often overlooked commodity. The price is usually unpredictable and volatile as third party factors outside of the industry tend to dominate the price. Demand is said to be weakened by uncertainty in global markets and a lack of clear trends. The uncertainty can be seen in the fall in prices on leading stock markets such as the London Stock Exchange, the Nikkei in Japan and the Chinese Stock market. This loss in value leaves less money to speculate and invest within the international system. As this sentiment leads to change in expectations and pressures on pay, there will be less demand for consumer goods which will further dampen demand for Cotton.
John Richardson
Deputy Editor
Copper
There has been a 23% correction in Copper as of the beginning of September. According to Bloomberg this is due to weak performance in equities of developing countries which in turn pushes down the demand for the raw material as the companies will desire less and this is a delayed indicator. Global demand has remained steady with yearly growth of around 4%. This demand for copper is kept strong through demand for mid-range to luxury cars and telecommunications. A further cause of the decline in price is the conditions of China and the United States trading relations calling in to question the demand for the commodity and transactions between these two major economies.
Cotton
The price of Cotton has decreased by 11.24% over the last 3 months. In the past month, speculators have held a net short in this large but often overlooked commodity. The price is usually unpredictable and volatile as third party factors outside of the industry tend to dominate the price. Demand is said to be weakened by uncertainty in global markets and a lack of clear trends. The uncertainty can be seen in the fall in prices on leading stock markets such as the London Stock Exchange, the Nikkei in Japan and the Chinese Stock market. This loss in value leaves less money to speculate and invest within the international system. As this sentiment leads to change in expectations and pressures on pay, there will be less demand for consumer goods which will further dampen demand for Cotton.
There has been a 23% correction in Copper as of the beginning of September. According to Bloomberg this is due to weak performance in equities of developing countries which in turn pushes down the demand for the raw material as the companies will desire less and this is a delayed indicator. Global demand has remained steady with yearly growth of around 4%. This demand for copper is kept strong through demand for mid-range to luxury cars and telecommunications. A further cause of the decline in price is the conditions of China and the United States trading relations calling in to question the demand for the commodity and transactions between these two major economies.
The price of Cotton has decreased by 11.24% over the last 3 months. In the past month, speculators have held a net short in this large but often overlooked commodity. The price is usually unpredictable and volatile as third party factors outside of the industry tend to dominate the price. Demand is said to be weakened by uncertainty in global markets and a lack of clear trends. The uncertainty can be seen in the fall in prices on leading stock markets such as the London Stock Exchange, the Nikkei in Japan and the Chinese Stock market. This loss in value leaves less money to speculate and invest within the international system. As this sentiment leads to change in expectations and pressures on pay, there will be less demand for consumer goods which will further dampen demand for Cotton.
Copper
Cotton