Saturday, January 1, 2011

Tight Supplies for Soft Commodities

from WSJ:
NEW YORK—A scarcity of commodities such as cotton, sugar and coffee that propelled prices to historic highs late in 2010 is expected to continue into 2011, and it could mean more prices increases for consumers.
Cotton, sugar and coffee are seen remaining in recent high price ranges as supplies remain low.
Cotton broke a post-Civil War record in December, as supplies from top producers failed to keep up with demand, particularly China's voracious appetite for the fiber. Cotton futures gained 91.5% for the year; the March contract closed 2010 on the InterContinental Exchange at $1.4481 a pound on Friday.