Cotton Soars to New Records as Chinese Demand Surges

Chinese imports rose an astounding 86% in 2010 with record demand from the textile sector and a diminished cotton crop due to weather issues. Cotton settled at an all time high of nearly $1.62 a pound, climbing 11% in the past week (compare to last years price of $.52/lb). The US Dept of Agriculture reduced its estimated output while also increasing its estimated consumption forecast. The same held true with Indias Southern India Mills Association , which reported a reduction in production and increases in consumption estimates. Global inventories are at the weakest seen since 1995-1996, and hoarding is becoming prevelant with speculators.