Cotton Closes In on $2 – WSJ.com

Cotton Feb 16, 2011 No Comments

Cotton futures surged to a fresh high, just three cents from $2 a pound, a demonstration that the recently soaring prices haven’t cooled demand.

Cotton prices jumped by the InterContinental Exchange's daily permitted limit of seven cents and stayed there for most of the day, settling up 3.7% at $1.9702 a pound, as mills scrambled to buy the futures.

The mills are “being pushed into the corner and forced to pay up,” said independent cotton analyst Mike Stevens.

Cotton prices have risen 36% this year and have more than doubled over the past 12 months, as rising demand has been coupled with tight supplies. Heavy rains in India and flooding in Australia and Pakistan hurt harvests this season.

via Cotton Closes In on $2 – WSJ.com.

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.