http://www.foxbusiness.com/markets/2010/09/20/cotton-tops-lb-clothing-textile-mills-pinched/ Yeah right! Cotton making new highs during this recession? As if all customers were buying new clothes every day? Talk about bubble?
The US dollar is made out of mostly cotton. And the fed is running that printing press overtime. Thats why cotton prices are going up.
Pure genius. Imagine if that were true. The simplicity. What fools we have been looking for growth when all this time it really was the USD.
"High cotton prices have squeezed clothing makers in the United States and around the world." Yeah, right - how much worth of cotton is in a dress shirt they sell for $20 - 10 cents? 20 cents? Must be tough to mark up items that much! JJacksET4
Don't forget to take into account the advertising, transportation, packaging, mannequins and rude customer service when you're buying that shirt.
I laugh at the price of clothing in todays market. Anyone paying full retail for clothing is a fool, I wait until I find a sale on name brand t-shirts and dress shirts and even then I feel like I paying too much. I know retailers have to make money on their clothing lines but if the consumer only knew how much it cost to manufacture clothing they would be taken back by the huge mark ups these companies charge.
Cotton futures price graph. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2961888 \img>