Cotton clothing prices set to rise due to cotton price hike
Expect your cotton clothing goods to cost more starting in December. The cotton market has seen cotton prices steadily increase hitting a record high, Tuesday.
New York — Cotton prices jumped to another record high Tuesday amid growing concerns about meeting robust demand with tight global supplies.
Cotton for December delivery added 5 cents to settle at $1.3426 a pound, a record high. That's up 84 percent from July.
And it won't be long before consumers likely will feel an impact, too, with higher prices expected next year on many products made with cotton, said Spencer Patton, founder and chief investment officer for hedge fund Steel Vine Investments LLC.
"I'd be buying those socks and underwear and T-shirts now," First Capitol Group analyst Sharon Johnson said. "It is not going to be pretty when these prices really hit."
Most commodities also benefited as the dollar grew weaker against other currencies after the Federal Reserve began a two-day meeting to decide on measures to reinvigorate the economy. A decision is expected Wednesday. If the Fed announces more plans to buy bonds, as many expect, that could push the dollar lower by driving down U.S. interest rates.
Since commodities are priced in dollars, a weaker dollar makes them more of a bargain for traders who use foreign currencies.
In metals contracts for December, gold gained $6.30 to settle at $1,356.90 an ounce, silver added 28.4 cents to $24.836 an ounce, copper added 5.4 cents to settle at $3.8390 a pound and palladium gave up $3.25 to settle at $645.45 an ounce.
January platinum added $7.60 to settle at $1,719.10 an ounce.
In other trading, oil prices benefited from the weaker dollar and speculation about the Fed's stimulus program.
Benchmark crude for December delivery gained 95 cents to settle at $83.90 a barrel on the New York Mercantile Exchange.
In other December energy contracts on the Nymex, heating oil added 1.59 cents to settle at $2.2936 a gallon, gasoline rose 1.67 cents to settle at $2.1096 per gallon and natural gas gained 3.8 cents to settle at $3.870 per 1,000 cubic feet.
In grains and beans, December wheat fell 8.25 cents to $6.9425 a bushel, December corn lost 1.5 cents to settle at $5.7575 a bushel and January soybeans slipped 1 cent to $12.34 a bushel.