Cotton prices are also reaching record highs. Since cotton is now competing for land with soybeans and corn, cotton futures prices are also reaching fresh 4-year highs along with other agricultural commodities. Agricultural commodities prices tend to be well supported during recessionary times, since people must still continue to purchase food and other basic staples. Here is the article on Marketwatch.com:
Cotton jumps to almost four-year high
On the other hand, crude oil prices have been dropping in recent days, due mostly to concerns that demand may fall in a recession. Comments overnight by the Saudis that they have greater supply than previously thought, even though they refuse to provide it to world markets, has also helped to drive prices lower.
Tuesday, January 15, 2008
Cotton joins agriculture bulls, while crude drops
