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Joe Nicosia says six key issues may well determine cotton's winners and losers for this year.
IN HIS annual cotton outlook presentation at the Mid-South Farm & Gin Show, Joe Nicosia of Louis Dreyfus Commodities pointed out six key issues that could impact U.S. cotton this year.
"There are going to be winners, and there are going to be losers," he says.
1Economic Challenges
Last year, Nicosia notes, the Federal Reserve said not to worry about inflation.
"It's a little more persistent now," he says. "We went from slightly below 2% inflation up to 9%."
That type of jump impacts the cost of production and the value of the dollar versus other currencies, especially in Pakistan, Bangladesh, Turkey, and China. As Nicosia points out, when their currency weakens against the dollar, it makes U.S. products more expensive for them. And...