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…
Submitted by Tyler Durden on 02/17/2011 08:27 -0500