Nutmeg you should be posting these articles, I didnt come across this news until you mentioned it just now! Chinese cotton crop looking for a home, any home Forrest Laws Jan. 31, 2011 12:00am Got a spare bedroom for storing an extra bale of cotton or two? Thatâs what cotton farmers in China are doing, according to the Wall Street Journal. A reporter for the Journal recently wrote about a Chinese cotton farmer named Yu Liamin who is storing cotton in two rooms of his home in Huji in Shandong Province, 220 miles southeast of Beijing. Mr. Yu is believed to be one of thousands of Chinese cotton growers who are hoarding cotton â Mr. Yu has about two bales of seed cotton in his house â in anticipation that prices for their crop will go higher in the weeks ahead. The reporter, Carolyn Cui, says thereâs no way of knowing how much cotton is being stored in private homes. Some believe that with 25 million cotton farmers in China, the stash could amount to 9 percent of the worldâs cotton supply. Nearby Intercontinental Exchange cotton futures were trading at $1.69 per pound in New York today, which is near the 140-year high. But analysts say cotton is being sold in China for the equivalent of $2 per pound. The Journal article, âChinese take a cotton to hoarding,â says prices have jumped on fears the world is running short of cotton. Earlier this month, speakers at the Beltwide Cotton Conferences in Atlanta, Ga., said that as much as 96 percent of the 2010 U.S. cotton crop has already been sold. Chinese cotton imports in December 2010 were more than double the amount from December 2009 as Chinaâs textile mills gear up to meet the demand from a recovering world economy. Whether the cotton stored in private homes could take some of the luster off the picture remains to be seen.
This is getting just infuckingsane!!! Is this suppose to be happening, the answer is no but due to the inflated prices people are taking actions to hoard every last piece of cotton they can get their hands on! http://online.wsj.com/article/SB10001424052748704680604576110423777349298.html?mod=googlenews_wsj
Chinese cotton imports in December 2010 were more than double the amount from December 2009 China is the largest cotton producing country in the world (35.8 million bales, 2007) Whether the cotton stored in private homes could take some of the luster off the picture remains to be seen. --------------- China has about 100,000 cotton farmers ----------------- Time to pass out a few copies of Jesse Livermore, how not to corner the cotton market. But then again, China isn't speculating on the commodity, they are going to produce the final product. ----------------------
If cotton is traded in futures market and if there are options traded, I am sure Goldman Sachs is behind this price rise In summary, crooks are making money from an item which every human being needs especially poor people. Goldman sucks big time
Bet on cotton, soyben next year : Goldman Sachs Published on: December 14, 2010 at 15:55 LONDON (Commodity Online) : Global investment banking and securities firm Goldman Sachs predicted good returns from cotton and soybean next year. In its latest report, Goldman Sachs placed cotton and soybeans among a basket of commodities forecast to return 28% to investors next year as China competes with a revived US for limited supplies. http://www.commodityonline.com/news/Bet-on-cotton-soyben-next-year--Goldman-Sachs-34540-3-1.html
Greed rules on wallstreet, if they can make a buck on rising commodity prices while third world countries starve so be it, wallstreet and goldman don't care, these high rising commodity prices, if they continue to rise like they have been, are going to lead to huge uprises and protests around the world. Just wait.
Greed is good. High prices are an incentive for people to start growing cotton. Increased supply can check the increase in prices.
Look at it this way: the speculators now help up drive cotton which in turn will convince more farmers around the world to commit acreage to cotton, hoping to participate in the higher prices. That will (in theory) create new supply.
My point exactly. Margin erosion. Consumers can't afford a price hike, therefore clothing makers don't have much wiggle room on price increases.