Last week, when commenting on cotton's torrid YTD performance, we noted "A retest of the $2 psychological price barrier is now guaranteed and is on next week's docket." This despite the ICE's 25% hike in initial and maintenance margins. Sure enough, as expected, cotton has just passed the $2 price (an all time record obviously). Since our initial observation on cotton's bubbly performance back in September, cotton has now surged by over 100%. But fear not: surely this is a demand phenomenon, as revolutionaries across the world realize they have to be well-dressed for all those cameras...
http://www.zerohedge.com/article/cotton-passes-2-parabolic-sailing-ahead
That's quite a chart.
Anyone know what's going on with cotton? Is it all speculation, or rising third world demand, crop failures, all the above?
