Cotton Prices Continue to Rise Amid Conflict Environment

Cotton prices are maintaining their strong performance despite concerns about a slowdown in the global economy. The commodity was trading around 65 cents per pound before February 28, when Israel and the US began attacks on Iran. Since the onset of the conflicts, cotton prices have recorded an increase of approximately 18.5%. This rise highlights the impact of regional tensions on commodity markets. Market participants note that geopolitical risks are supporting prices by increasing concerns over supply security. The current environment once again underscores the volatile trajectory of agricultural commodities. Although a potential slowdown in global economic activity is expected to negatively affect demand, uncertainties on the supply side continue to exert upward pressure on prices. The cotton market continues to seek a balance between geopolitical developments and macroeconomic data. Investors believe that both factors will continue to shape price dynamics in the coming period. This is not investment advice.