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India, the largest cotton producer, has imported bales to restock after heavy exports last year. Indian farmers have also suffered through damaging pests and late monsoon rains.
“The last thing the world needs is more cotton. The market has just begun to unwind massive stockpiles of fiber held in China. A global cotton shortage five years ago led China, then the world’s largest producer and consumer, to hoard the global cotton supply to protect its textile industry,” according to Barron’s.
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iPath Bloomberg Cotton Subindex Total Return ETN (NYSEArca: BAL)
