Cotton Prices Keep Soaring, More Cotton Getting Planted

Cotton prices keep ramping,rising 3% today and closing on $2 a pound. Cotton has risen 36% this year, eclipsing record levels reached during the Civil War (ours, in the 1860s) and that has clothing makers getting nervous.

On Monday, a number of apparel retailers said prices were higher and heading higher for everything from jeans to shirts. If the price increases stick, it’ll be another notch in the belt for inflationistas.

Unsurprisingly farmers are taking advantage. John Deere, which reported strong earnings this morning, projects that cotton plantings will rise to 13 million acres this year from 11 million acres in 2010.

Earlier today, Abercrombie & Fitch reported surprisingly strong earnings and steady margins, an indication that its price increases are getting passed through to customers. Its shares are up 6.7%.

(Source: http://blogs.wsj.com/marketbeat/2011/02/16/cotton-prices-keep-soaring-more-cotton-getting-planted/)