How to Buy Cotton Stocks
For some commodities, it is possible to gain indirect exposure to the resource through an investment in companies that are engaged in production. This is challenging in the case of cotton because many growers are small farms or private entities, and as such not open to direct investment.
There are, however, some options available. Origin Agritech (SEED), for example, sells hybrid crop seeds (including cotton seeds) in China. There are also many agribusiness firms that provide products and services to farmers, and the profitability of these companies often shows a correlation to agricultural spot prices. Some of the largest agribusiness firms include Potash (POT), Monsanto (MON), and The Mosaic Company (MOS). These certainly are not pure play on cotton, but present another option for investors looking to gain exposure.
Other Ways To Invest In Cotton
Cotton In The News
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