June 1, 2006
Cotton closed higher today, spurred on perhaps by the following news items....
China's textile industry consumes about 40% of the world's cotton and they are already BIG importers...Crop problems in China would have a MAJOR impact on Cotton prices.
A 25% reduction in the Chinese cotton crop is a big, big deal...
Meanwhile, in Texas, which produced about 39% of the USA's cotton last year, the weather problems continue....
I don't know what's coming in cotton prices, but I do know there is the distinct possibility for a price explosion.
If you are thinking about doing this, DON'T wait around to call me...Commodity moves can accelerate VERY rapidly, and with the world's two largest Cotton producers both experiencing weather problems, it certainly seems like that could be the case here.
December gapped up (again) and closed .91 cents higher today....I think it is headed, at a minimum, into the mid to upper 70's....