the majority of the cost of clothes is from the fabric..basically when you buy clothing at walmart you are buying the cost of the fabric man clothing to triple in price. is this increase in cotton from increase in demand or just market manipulation or low interst rates? i really doubt it's higher demand for clothes..tonnes of clothes not selling cotton is replaceble natural resource this a direct result from FED and low interest rates if i'm not wrong. you see the unintended consequence of 0% interest rate? clothing sales will plummet and sales tax for gov't will plummet deficits increase an more taxes to cover govt deficits..sales tax is a large portion of gov't revenue if prices of cotton stay up here the supply chain wil show up in higher rpices in clothing and anythying made of oil .....not good for the economy. going forward....stagflation.
You're forgetting the supply side of the equation. US ending stocks for 2010-11 is projected at 1,9m bales - lowest in over 50 years. And that is with a conservative estimate of exports...
http://www.frugal-cafe.com/public_h...o-will-prices-of-any-clothing-made-of-cotton/ http://www.business-standard.com/india/news/garment-companies-passcost-increase/418406/