Cotton futures aren't just about fabric and textiles. They're a window into global economic health, climate patterns, and supply chain resilience. When you trade cotton futures, you're essentially betting on how well farmers in Texas can manage droughts, whether Brazilian currency will strengthen, and if shipping costs from India will spike. Think of cotton as a commodity that touches everything. A drought in the US South doesn't just affect farmers. It ripples through clothing manufacturers in Bangladesh, retail chains in Europe, and ultimately your portfolio. During 2020-2021, exactly this happened. Severe drought conditions reduced US cotton production by nearly 15%, and ICE Cotton #2 futures jumped more than 15% in just a few months. Traders who saw it coming made significant profits. Those who didn't felt the pain. Understanding Cotton Futures Contracts Let's take a look at specifically what you're actually trading. ICE Cotton #2 futures are the ...