Cotton prices jumped to a record high on Friday on strong Chinese demand and the prospect of reduced supply.

In New York, ICE December cotton futures touched 119.80 cents a pound, the highest price since 1995, The Financial Times reported.

Rising cotton prices will mean higher clothing prices, especially in low-cost items such as t-shirts and underwear. Jeans-maker Levi Strauss has already announced price increases due to the cost of cotton.

Last week, the U.S. Department of Agriculture lowered its estimates for cotton production. Meanwhile, cotton futures in China are trading at 160 cents a pound on local shortages.

"China panics, then New York reacts to it the next day," Peter Egli, risk manager at Plexus Cotton, told the FT.




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Ed Vet

Wait a year to replace those jockey shorts...price will come down and you can get abetter fitting size.

October 21 2010 at 11:35 PM Report abuse rate up rate down Reply
pinus1

Texas grows the most by a state. China is the world's largest producer of cotton at 36 mil bales a year. Yes, decades back when so-called American companies began shipping our jobs first to Japan and now China, the demand for all related materials dropped too. America once grew, milled and produced the finest cotton in the world. It was better than Egyptian, Turkish, and Portugese. Job after job were lost, mills were closes, entire towns died. The farmers who grew such massive amounts of cotton to meet the demand, turned to other, more lucretive crops, like soybeans, and corn. Nothing has changed for the positive. These so-called American companies have no right to even be allowed to trade on the New York Stock Exchange. Let them sell in China, make them sell in China. Before that we need to levy a burdensome tax; customs revenue, on all imported Chinese products. Nice thought "studentroom." However, 90% of the world's silk comes from, one guess..... Ask why The Congress, whose job it is and is clearly defined in The Constitution of The United States of America refuses to do this? I think they are loving the death of the "middle-class." You all know the middle class that made America so great....

October 21 2010 at 7:06 PM Report abuse rate up rate down Reply
studentroom

I agree with duey35 to go without. Dump those tidy-whites and go to silk. Now there is a business adventure; silk worm farming. Silk boxers are so senseual!

October 21 2010 at 11:53 AM Report abuse rate up rate down Reply
duey35

Go commando

October 21 2010 at 10:59 AM Report abuse +1 rate up rate down Reply
alfredschrader

Here in the South cotton grows like a weed. Should I plant a large crop and flood the market ? How about 99 cent T-Shirts ? Al-

October 17 2010 at 7:23 AM Report abuse +2 rate up rate down Reply