Cotton closed LIMIT-UP at yet another ATH in USA on Tuesday night at just under 195c/lb!!! I never envisaged cotton price reaching this extraordinary level despite holding shares in cotton grower TAN. Will we see the off-the-richter-scale price of 200c/lb??? TAN and PAG sold 2011 crop fwd at half these prices. Yet they can currently sell next year's crop at close to 190c/lb=$950/bale!! Both firms/farms already have enough water for 3 years of crop. That's 3 yrs not 2. Yet somehow mkt reluctant to believe it can happen.
