Commoditiesmarket-analysis
Cotton Prices Forecast 2026: Why 'White Gold' is About to Explode
T
Trade-Wise Staff
Editor
You are reading Lesson 2 of the market-analysis course.
1. The Weather Play
Monitor NOAA forecasts for the US Southern Plains.
- Bullish Signal: Continued drought reports in July/August (harvest season).
- Strategy: Buy Cotton CFDs on pullbacks if weather worsens.
2. The Correlation Trade
Cotton has an inverse correlation with the US Dollar (DXY).
- Setup: If the Fed cuts rates and USD weakens, commodities like Cotton become cheaper for foreign buyers, boosting demand.
- Execution: Look for a weak Dollar Index as a confirmation signal for long Cotton positions.
3. How to Trade: Futures vs. CFDs
- Futures (ICE): Requires large capital and physical delivery risks. Not for beginners.
- CFDs (Contracts for Difference): The best way for retail traders. You can trade small sizes, use leverage (typically 1:10), and go long or short without owning bales of cotton.
Recommendation: Plus500 for Commodities
Soft commodities often have wide spreads on generic brokers.
Plus500 specializes in commodity CFDs, offering competitive spreads on Cotton and robust charting tools to track price action against weather news.
Analyze the Chart
Is Cotton breaking out?
Use our Commodities Dashboard to check real-time Cotton charts and technical indicators.
Found this helpful?
Help your trading friends by sharing this guide.