Cotton at a 150 Year high and up 44% YTD, WHEW!!!!!

[S2007S]

Who knows how much more upside is left in Cotton, maybe another 100% for 2011, ha but when this bubble goes its going to be one fucking huge collapse.



By LESLIE JOSEPHS

NEW YORK—Cotton futures surged to a fresh high, just three cents from $2 a pound, a demonstration that the recently soaring prices haven't cooled demand.

Cotton prices jumped by the InterContinental Exchange's daily permitted limit of seven cents and stayed there for most of the day, settling up 3.7% at $1.9702 a pound, as mills scrambled to buy the futures.

Cotton prices have more than doubled over the past 12 months.

Mills that purchased cotton "on call"—without fixing a price—have until Friday to lock in prices under exchange rules. The mills have waited until the last minute to place buy orders locking in prices, hoping the market would fall.

The mills are "being pushed into the corner and forced to pay up," said independent cotton analyst Mike Stevens.

 

[The RainMaker]

I am clear all the time : You want GMO ? okay ... you get nothing. the opposite of the marginal approach of the low lifes.

No brain - no clothes

 

[S2007S]

Cotton soaring again, over $2.00 a pound....

This is significant news that continues to be ignored, at the rate cotton is moving it could be nearly $3.00 a pound by mid 2011 but I doubt the bubble grows that big because prices are going to collapse before that. Very unhealthy market conditions this economy is in at the moment, only one cheering high commodity prices are the speculators. Before you know it cotton will fall back below $1.50 then a $1.25 before you know it it will be back to .95 cents a pound

 

[Mav88]

has anyone else noticed that beer and liquor are up also?

my favorite single barrel bourbon went up $3 in one day

 

[darwin666]

damn.. looks like its time to store hard liquor .. i will get the scotch i need for the next 5 year years.. i think USD is going down.. price of premium liquors is eventually going to go up.. Is there any downside to storing sealed bottles of liquor

some years back, I had a johnnie walker bottle and its cork stopper disintegrated. ha ha.. good I saw it and replaced it..

 

[denner]

Quote from S2007S:

Cotton soaring again, over $2.00 a pound....

This is significant news that continues to be ignored, at the rate cotton is moving it could be nearly $3.00 a pound by mid 2011 but I doubt the bubble grows that big because prices are going to collapse before that. Very unhealthy market conditions this economy is in at the moment, only one cheering high commodity prices are the speculators. Before you know it cotton will fall back below $1.50 then a $1.25 before you know it it will be back to .95 cents a pound

That's pretty much how I see it as well. It's a pretty simple trend over the past decade or so. Each successive bubble has to be more parabolic and extreme than the previous for our economy to have any appearance of "normal". I say that with a great deal of cynicism as it's abundantly clear that our economy is nothing more than a near constant asset reflation scheme whereby the only "benefit" to the real economy is a derivative of these short lived bubbles but ONLY when they are in a particular asset class that can be leveraged by the consumer (i.e. real estate and all of its' related bubbles).

Now that we've moved onto commodities, one could argue that farmers and agricultural land owners are benefitting...which is probably true, but it's a far smaller percentage of the population that indirectly benefitted from the prior bubbles. Simultaneously, it's a drag on spending as the majority of the population is stuck with higher food prices.

 

[denner]

Quote from Mav88:

has anyone else noticed that beer and liquor are up also?

my favorite single barrel bourbon went up $3 in one day

Interesting...

Have to wonder how these sorts of things play out. Producers of food, beverages, liquor, etc are faced with an enormous rise in input costs...they've been loath to pass the costs on as they know that the economy (outside of the top 1% of asset holders) is still on its ass. They raise prices, all of a sudden demand drops off and the consumer substitutes product x for product y. I'm guessing they play the waiting game..i.e. absorb the higher input costs, allow the margins to squeeze for a defined period of time in the hopes these bubbles revert and they can reclaim some margins on their products.

I think that they realize that in this day and age, if you turn the consumer away with higher prices, there are very good odds they will never return. Everyday, it happens in this economy. Whether it's a transition from name brand products to generic products or substituting eating out in lieu of cooking at home, those trends can gain traction and the next thing you know the company is in a dire situation.