| From Hardassetsinvestor.com: Over the last three months, the price of cotton futures has risen over 50 percent, propelled by speculation that demand will outstrip supply. Just last week, the price for a pound of cotton hit $1.198, the highest level since the New York Cotton Exchange was created—back in 1870.
The reason supply concerns have hit such panic stages is due to inclement weather around the globe. China, the No. 1 producer of cotton, will see its crop fall by 5.4 percent in 2010, drowned out by a series of heavy rains. Pakistan, the No. 4 producer, also had to cope with devastating floods that ravaged the nation..............................................Full Article: Source
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