Cotton's A Hot Commodity

EL PASO - The fabric of our lives is no longer the steal it used to be.

Cotton prices are at an all-time high, which means shelling out more to fill up your closet.

"I remember when I was a kid, picking cotton for 3 cents a pound," said farmer Pete Eveler. He owns Eveler-Reynolds Farm in Clint, TX with his wife, Susan.

"The price is higher now than, in our lifetime, it's ever been," Susan said.

Figures from The National Cotton Council of America show the price of cotton at the end of last month was the highest it's been in ten years, at $1.80 a pound. That's also more than double since last January - which bodes well for Pete and Susan.

"We're not complaining, we haven't missed any meals," Susan said.

While the rising cotton prices is good new for farmers, it's bad news for consumers, because that cost is transferred to the clothes on your back.

"the rising price of cotton will be shared by the manufacturer, retailer, and consumer," said Henri Rafael, owner of Versailles Boutique in west El Paso. He said he's going to have to start charging more for clothes and he says he's not the only one.

"This is not going to be good for discounters, and they're going to gave a tough time competing," Rafael said.

"Many of those countries are now expanding more rapidly, and so the demand for clothing has increased substantially," said UTEP economy professor Tom Fullerton. He said while some countries are bouncing back from recession quicker than the U.S., the dollar just doesn't go as far as it used to.

"The other deficits are declining and that's causing an excess in the volume of dollars throughout the global economy," Fullerton said. That translates to higher commodity prices, costing more out-of-pocket for some, but keeping pockets full for others.

"It's a lot of work, and you're tied to it, but it's a great life," Susan said.

Fullerton said prices will hopefully stabilize in a few months.

(Source: http://www.ktsm.com/news/full-story-cottons-a-hot-commodity)