Saturday, July 23, 2011

Cotton prices tumble

Here's the story at the WSJ
Cotton prices, which surged to historic highs this spring, have plunged 38% so far this month, roiling mill owners and apparel makers.

It's a reversal for clothing makers that spent the last year grappling with higher costs and how much, if any, could be passed along to consumers. Now, retailers are wondering if lower cotton prices, off 53% since their March 4 peak, will last or if the roller-coaster ride will continue.

"There's never been this kind of volatility in cotton—ever," Eric Wiseman, chief executive of VF Corp, the world's largest apparel company, said in an interview on Thursday.

...
I guess I'd just like to note for the record that I called this one a long time ago

Maybe I just got lucky.

My juices are starting to flow for a nice long substantive post about price volatility. I should have time to write on tomorrow's travel day to the AAEA meetings.  Maybe see you in Pittsburgh.

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