Stronger Than Usual Commodity Prices are Here to Stay

27/01/2011 at 6:30 am Leave a comment

The US cotton price hit a 140-year high last week of $US1.6789 a pound for near-term futures.  From corn stalks to cotton bushels, soybeans and more, the story is the same: stronger-than-usual commodity prices for farmers.

Although no one holds the crystal ball, agricultural professionals estimate such prices will continue through the year due in part to supply concerns.  As the U.S.  economy continues to struggle, countries such as China, India, Japan and Brazil show continued growth and demand for products.

Many times, when commodity prices rise, it’s a short-crop phenomenon –  producers grow more of a specific crop, meet that demand and then prices return to normal.  Today’s situation has potential to stick around because farmers have more flexibility in what to grow.

“This is not so much a short crop driven thing, it may have more staying power than normal”, explains Mark Waller a professor with the Texas AgriLife Extension Service in College Station.  “It’s what works best for them”, he said, explaining producers can factor in input costs and more.

As commodities continue to rise, you can expect that both manufacturers and end consumers will be holding their pocket books tightly.  Economically viable alternatives are the key in these tough times.  We believe that our CRAiLAR Fibre Technology is the part of the solution to the ever rising price of cotton.

Click here to learn more about what we’re doing to bring affordable, sustainably-made solutions to the market.

Entry filed under: Business, Cotton, Economy, Environment. Tags: , , , , , .

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