Plastic prices rise as institutions flood into the cotton derivatives market.

The rise in plastic prices has driven funds into the cotton futures market. The higher the price of synthetic fibers such as polyester, the more clothing and textile companies tend to switch to cotton, which was previously at a low price. Cotton futures rose by only 4.6% this month, but reached 70 cents per pound on Friday, the highest since December 2024. Data from the U.S. Commodity Futures Trading Commission shows that hedge funds and other speculators are positioning themselves for cotton to continue to rise. Data shows that in the week ending March 17, fund management institutions poured into the cotton futures and options market on a large scale, reducing their short positions to a weekly record low. In the week ending this Tuesday, these traders further reduced their short positions and increased their long positions. Dave Whitcomb, head of the Swiss Peak Trading Research Company, said, "Cotton was previously one of the major commodities with the lowest prices and most oversold conditions. When macro traders look for stagnant commodities with potential for catching up, cotton is at the forefront."