Cotton Prices up more than double this yr, biggest annual gain in 37 years!!!!!!!

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S2007S

Cotton Advances to Record, Jumps Daily Limit on Improved Demand Outlook
By Yi Tian - Dec 20, 2010 10:41 AM ET



Cotton prices jumped to a record in New York, gaining by the daily limit for a third session, on speculation that demand will rise as the U.S. economy strengthens.

U.S. growth is accelerating as 2010 ends, with economists, consumers and companies such as General Electric Co. becoming more confident about next year’s outlook. The Thomson Reuters/Jefferies CRB Index of 19 raw materials jumped to the highest level in more than two years, led by gains in cotton, wheat and cocoa.

“It appears everybody wants to own commodities, and cotton is involved in that,” said Sid Love, the president of Joe Kropf & Sid Love Consulting Services LLC in Overland Park, Kansas. Prices are up “on a combination of people trying to do business and speculative buying,” he said.

Cotton for March delivery gained by the exchange limit of 4 cents, or 2.7 percent, to a record $1.5412 a pound at 10:19 a.m. on ICE Futures U.S. in New York. Prices have more than doubled this year, heading for the biggest annual gain since 1973.

Cotton production in India, the world’s second-biggest grower, will be less than previously forecast after excess rainfall hampered harvests in some areas, according to the Cotton Association.

“This is what we call smoke in the mirror,” said Sharon Johnson, a senior analyst at Penson Futures in Atlanta. “We do have some bullish fundamentals, but they are nowhere near what we saw before. We’re up here mainly on technicals.”

Prices can go up another 3 or 4 cents, Johnson said. “Once we turn, we will probably start a slow grind down for two years.”
 
clothing prices to rise 100%..

CPI inflation that is real inflation.

the supply chain will be increasing price...

it's not from increase demand..it's direct result of 0% interest rates...money is pouring into any asset including commodities..

clothing cost for everyone to double at walmart..and that is for the low end clothing as the costof clothing is mostly fabric cost.

rich people won't see much increase in clothing as fabric cost is minimal as percentageo cost of designer labels.

tthe average joe or working class pay more...that is the unintended consequence of quantitaive easing and easy access to fed funds at 0% interest rate. thanks a lot Bernanke! Thanks for nothing!

and clothing companies are already laying off workers to maintain profits margins as they cannot pass on higher cost to consumers without reducing demand for clothing. sales tax for clothing to decrease if cotton prices stay up here.

higher price less demand..slower economy..

now that is economics 101..bernanke knows this he is a phd in economics.


Quote from S2007S:

Cotton Advances to Record, Jumps Daily Limit on Improved Demand Outlook
By Yi Tian - Dec 20, 2010 10:41 AM ET



Cotton prices jumped to a record in New York, gaining by the daily limit for a third session, on speculation that demand will rise as the U.S. economy strengthens.

U.S. growth is accelerating as 2010 ends, with economists, consumers and companies such as General Electric Co. becoming more confident about next year’s outlook. The Thomson Reuters/Jefferies CRB Index of 19 raw materials jumped to the highest level in more than two years, led by gains in cotton, wheat and cocoa.

“It appears everybody wants to own commodities, and cotton is involved in that,” said Sid Love, the president of Joe Kropf & Sid Love Consulting Services LLC in Overland Park, Kansas. Prices are up “on a combination of people trying to do business and speculative buying,” he said.

Cotton for March delivery gained by the exchange limit of 4 cents, or 2.7 percent, to a record $1.5412 a pound at 10:19 a.m. on ICE Futures U.S. in New York. Prices have more than doubled this year, heading for the biggest annual gain since 1973.

Cotton production in India, the world’s second-biggest grower, will be less than previously forecast after excess rainfall hampered harvests in some areas, according to the Cotton Association.

“This is what we call smoke in the mirror,” said Sharon Johnson, a senior analyst at Penson Futures in Atlanta. “We do have some bullish fundamentals, but they are nowhere near what we saw before. We’re up here mainly on technicals.”

Prices can go up another 3 or 4 cents, Johnson said. “Once we turn, we will probably start a slow grind down for two years.”
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Exactly, only fools think its from increased demand, its far from it, Bubble ben bernankes historical low interest rates and easy money policies are creating the next big bubble.

QE1, QE2 and the rest of the QE3, QE4 QE5 and stimulus is creating inflation and will continue to do so. Oil and the rest of commodities continue to rise.



Quote from brokenmarkets:

clothing prices to rise 100%..

CPI inflation that is real inflation.

the supply chain will be increasing price...

it's not from increase demand..it's direct result of 0% interest rates...money is pouring into any asset including commodities..

clothing cost for everyone to double at walmart..and that is for the low end clothing as the costof clothing is mostly fabric cost.

rich people won't see much increase in clothing as fabric cost is minimal as percentageo cost of designer labels.

tthe average joe or working class pay more...that is the unintended consequence of quantitaive easing and easy access to fed funds at 0% interest rate. thanks a lot Bernanke! Thanks for nothing!

and clothing companies are already laying off workers to maintain profits margins as they cannot pass on higher cost to consumers without reducing demand for clothing. sales tax for clothing to decrease if cotton prices stay up here.
More...
 
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