What is going on with cotton prices?

Notwithstanding a pullback the past two days, cotton prices have been on a tear lately, recently surpassing $1 per pound for the first time since the 1990s. From various news reports, it appears that the surge is due to  recent floods in Pakistan coupled with unusually strong demand in China and elsewhere for cotton fiber and yarn. It will be interesting to see whether textile producers and clothing retailers can pass along higher prices to consumers.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s