Bubble ben bernanke says "LOW RATES "WON'T" STOKE INFLATION"

Discussion in 'Economics' started by S2007S, Nov 4, 2010.

  1. The political process is broken and has been for a long time. Bribery, by way of special interests lobbying, has forever corrupted the system.

    More Fed apologist bullshit from you.
     
    #91     Nov 5, 2010
  2. S2007S

    S2007S

    Record Peak in Cotton for the 4th consecutive day, yep no inflation is on the way, everything is pretty much tame, right bubble ben bernanke.


    NY cotton up, highest close despite rising dollar



    Fri Nov 5, 2010 3:55pm EDT

    * Cotton hits record peak above $1.44 per lb


    NEW YORK, Nov 5 (Reuters) - U.S. cotton futures rose on
    Friday, hitting a record peak for a fourth consecutive day and
    ending higher despite losing some momentum late in the session
    as the dollar rebounded.

    "The reason futures are not any higher than they are is
    because the dollar is up and a lot of the other commodities are
    on a net basis, unchanged," said Sharon Johnson, sr cotton
    analyst at First Capitol Group in Atlanta up

    The benchmark December cotton contract CTZ0 vaulted to a
    record peak at $1.4460 per lb, before ending up 1.78 cents at
    $1.4223 per lb, the loftiest settlement close in history for
    the market.

    In China, cotton prices rose more than 3 percent, with the
    Zhengzhou Commodity Exchange's May cotton contract CCFc4 up
    1,490 yuan at 31,235 yuan per tonne.

    "China has been trending higher and pulling futures with
    it," Johnson said.

    For the year, cotton is up nearly 80 percent due to bullish
    fundamentals. It is the best performing commodity in the
    Reuters Jefferies CRB index .CRB. (Graphic:
    link.reuters.com/kew48n )

    China is the world's largest cotton consumer, and is likely
    to have 5 percent lower cotton output this year. Low government
    stocks have made it difficult for Beijing to control prices.
    [ID:nTOE6A306L]

    Demand for cotton from the Chinese mills has been surging,
    with prices rising from exporters due to supply shortages and
    an empty pipeline of deliverable supplies against futures.

    Analysts said U.S. cotton prices are at a heavy discount
    and need to catch up to internal Chinese cotton prices of $2 to
    $2.20 per lb and world prices in the closely followed Cotlook A
    index, quoted at an average of $1.55 per lb.

    "Historically, the index is quoted 7-9 cents above futures,
    but over the last few months the index has consistently been 15
    to 20 cents above futures," said Mike Stevens, an independent
    cotton analyst in Louisiana.

    "This has kept futures looking relatively cheap to the rest
    of the world," he said.

    Trading conditions remained heavy. Volume traded in the
    cotton market stood at 62,400 lots by 3:15 PM EDT (1915 GMT),
    about 130 percent above the 30-day average at 27,160 lots,
    Thomson Reuters preliminary data showed.
    PRICES AT 2:57 P.M. EDT (1857 GMT):
     
    #92     Nov 5, 2010
  3. sumfuka

    sumfuka

    When the bear market rally starts for usd, cotton can drop 20-30% easily; so don't let your emotions get the best of you. You contribute a lot to this site, so I really don't wish for you to lose in these turbulent markets. :)
     
    #93     Nov 5, 2010