Greyson S. Colvin submits:Cotton prices are at record levels, near $1.70 per pound as supplies are at their lowest levels since 1993. We expect prices will continue to appreciate in the first half of 2011 as there is not enough cotton to go around and the deficit in supplies will continue to widen due to reduced production estimates.
Money Morning submits: By Don Miller Reacting to a potential squeeze that threatens to drive up cotton prices, the biggest cotton-futures exchange took measures last week to prevent speculators from taking big positions.
International Commodity Exchange (ICE) cotton futures for December delivery fell 0.6% Thursday to an 18-month low of 72.06 cents/pound – a level last seen November 23, 2012. A similar trend was seen in the iPath DJ-UBS Cotton Subindex Total Return SM Index ETN (BAL), which declined 0.5% (23 cents) to $48.68 on Thursday. Since the start of the year, cotton futures have fallen 15% and are currently down 26% from their March 26 high of 97.35 cents/pound.
By CommodityHQ: Cotton, the fluffy commodity, was one of the most talked about investments of 2010. With a number of factors combining, cotton prices spiked to historic highs last year and led to a number of investors jumping in on the trend, only to get burned when cotton tanked midway through 2011. Global consumption for this year was expected to surge, but unfortunately, the expected 120 million tons of cotton use was revised down to 113 million after issues in China and Pakistan led to lower demand.
MUMBAI: Pakistan is buying more cotton than expected from India after floods cut its own crop to the smallest in over a decade, opening an opportunity for the world's biggest producer to offload its bulging stockpiles. Farmers in India have struggled to find buyers over the past year after the world's top cotton consumer China cut import quotas to stimulate demand for its own fibre. The problem has been further exacerbated by near record high Indian output.
Investment U submits:
By Tony D'Altorio
Cotton prices have surged beyond $2 a pound, the highest level they’ve ever hit. The fiber didn’t even go that high during the Civil War’s cotton embargo.It is now up 170% since a year ago, and more than 40% since the beginning of 2011. Short-term squeezes have definitely contributed, as mills scramble to buy futures contracts to fix physical supply prices. But there are solid fundamentals to blame as well.
Today’s AM fix was USD 1,360.00, EUR 1,015.38 and GBP 867.29 per ounce. Yesterday’s AM fix was USD 1,365.75, EUR 1,020.28 and GBP 871.29 per ounce. Gold rose $4.70 or 0.34% yesterday, closing at $1,371.30/oz. Silver fell $0.16 or nearly 0.69%, closing at $23. Platinum rose $11.94 or .8% to $1,514.24/oz, while palladium was down $2.57 or .3% to $744.93/oz.
By Matt Schilling:On Friday, China had fulfilled its intention to release a portion of the cotton it had held in its state-based reserves. Many analysts believe the move could potentially create a shift in the global markets in which the fiber is traded.