Commodities
Cotton production by country: the cotton crisis erupted around the world. Raw materials died and rose in price.

Cotton production in the country is getting worse. The planet is in a cotton collapse. Due to climatic problems in the major exporting countries: the United States, Brazil, India and Pakistan, world prices for this strategic raw material have increased by 30%, the highest level since 2011.
In the United States and Brazil, which together produce half the world’s cotton, extreme temperatures and resulting droughts have reduced yields by nearly a third. In America, according to the Wall Street Journal, the percentage of abandoned cotton fields is as high as 40 percent. Cotton production in Africa is also suffering.
India this summer, in addition to a heat wave of 50°C, has faced an abundance of rain and an infestation of insect pests. In Brazil, about 200 thousand tons of cotton stocks went bad because of the drought. In Pakistan, monsoon rains of monstrous intensity have continued unabated since mid-June. Because of all these natural anomalies, stock prices have risen to $3,470 per ton.
Global problems with cotton began back in 2020, against the background of pandemics, lockdowns, and the breakdown of supply chains. Today they are exacerbated by weather disasters, leading to poor harvests, raw material shortages, and rising prices. This applies not only to cotton, but also to grain, vegetable oil, tea, coffee, beans, and vegetables.
At the same time, the growth in cotton prices will only slightly affect the cost of final products, analysts say. It occupies only 30-35% of the structure of clothing fabrics. The rest – man-made fibers, viscose, and other. And the fabric itself – not the only and often not the main component of the price of clothing. Purely cotton items – T-shirts, children’s clothing, bedding – can hypothetically increase in price by 10-15% at most.
Earlier we reported that Europe was returning to coal.
Commodities
Brent crude oil futures its lowest since 2021 amid banking crisis

The cost of May futures on Brent crude oil fell to $72.74 per barrel, losing 0.31%, according to data from the ICE exchange. Brent was trading at about $70 a barrel at its low for the day. That’s a record low for at least 15 months, that is, since December 2021.
WTI prices are also falling, with futures prices down to $66.43 a barrel (-0.46% from last week’s close), according to the exchange. WTI was trading at $64.12 a barrel at its low for the day. This is also the lowest value since at least December 2021.
The market is thus responding to the banking crisis: since the beginning of March, three banks (Silvergate Bank, Silicon Valley Bank, Signature Bank) have closed their doors in the US, and the day before, on March 19, Swiss UBS took over its rival, Credit Suisse, buying the bank for $3.2bn amid fears of its collapse. Investors fear a recession, which may cause a crisis in the banking sector, as a recession, in turn, would lead to lower demand for fuel, the agency said.
“Oil prices are moving mainly because of fears [of further oil price dynamics]. Supply and demand fundamentals are almost unchanged, only the banking problems have an impact,” said Price Futures Group analyst Phil Flynn.
Oil prices lifted from daily lows helped the S&P 500 and Dow Jones indices, which rose Monday, writes Reuters. Traders raised their expectations that the U.S. Federal Reserve would refuse to raise rates this Wednesday to protect financial stability amid banking problems, the agency noted.
“Volatility is likely to persist this week, with broader financial market concerns likely to remain at the forefront,” ING Bank analysts said in a note. They add that the impending Fed decision adds to uncertainty in markets.
Earlier we reported that the price of Brent dropped below $75 per barrel for the first time in more than a year.
Commodities
Gold prices will reach $2,075 “in the coming weeks”

Gold prices may continue to rise, analysts polled by the CNBC TV channel said. In their opinion, the difficulties of banks and a possible turning point in the policy of the Federal Reserve indicate the possibility of a new rise in gold prices.
“I think it’s likely that we’ll see a strong move in gold in the coming months. The stars seem to be aligned for gold, and it could soon break new highs,” said Craig Erlam, senior market analyst at brokerage Oanda.
The expert explained that interest rates are now at or close to their peak, and the market, amid recent developments in the banking sector, is laying on an earlier than previously expected start of rate cuts. They also added that this situation would boost demand for gold even if the U.S. dollar weakens.
This month, Fitch Solutions rating agency predicted that gold prices would reach $2,075 an ounce “in the coming weeks” amid global financial instability, writes RBC. The company also added that gold prices will remain at a higher than pre-pandemic levels in the coming years. Craig Erlam confirmed this forecast.
Other Wall Street experts are also predicting a long-term rise in gold prices. For instance, Tina Teng, analyst for British financial company CMC Markets, thinks that the U.S. Federal Reserve’s sooner departure from its policy of raising interest rates might provoke another rally in gold prices due to the weakening U.S. dollar and falling bond yields.
Earlier we reported that oil prices accelerated their decline, continuing a trend from the beginning of the week.
Commodities
Analysts at U.S. bank Goldman Sachs revised its forecast on oil prices

Analysts at U.S. bank Goldman Sachs, one of the most optimistic forecasts about the cost of oil, changed its earlier forecast about the growth of oil prices to $100 in the next 12 months, Bloomberg said.
Now analysts predict that Brent crude oil will reach $94 per barrel in the next 12 months and $97 per barrel in the second half of 2024, the publication said.
The bank said oil prices have fallen despite rising demand in China, given pressure on the banking sector, recession fears and investor withdrawal.
“Historically, after such traumatic events, price adjustments and recoveries are only gradual,” the bank notes.
This week, the situation surrounding Swiss bank Credit Suisse triggered panic in the markets as oil plummeted to a 15-month low and Brent crude fell 12% to below $73 a barrel.
After the price decline, the bank expects OPEC producers to increase production only in the third quarter of 2024, contrary to Goldman’s forecast that it will happen in the second half of 2023. Analysts at the bank believe a barrel of Brent blend will reach $94 in the next 12 months and trade at $97 in the second half of 2024.
Bloomberg reported that the largest oil exporter, Saudi Arabia, announced higher April oil prices for markets in Asia and Europe.
Earlier, we reported that Iraq and OPEC advocated for guarantees of no fluctuations in oil prices.
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