canadian clothing factory closing cotton's now $195 a pound!

[Illuminated Profile]

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Cotton prices have almost tripled during the past year.

Cotton prices began soaring in August of 2010 after bad weather cut harvests in major producing countries including China, the U.S., Pakistan and Australia.

Restrictions on exports from India, the world's second-largest cotton exporter behind China, have also produced cotton shortages. On top of that, worldwide demand for cotton has risen as the global economy improves.

Margins are thin in the clothing manufacturing industry. Raw materials typically account for 25 per cent to 50 per cent of the cost of producing a garment. Experts say labour costs range between 20 per cent to 40 per cent, depending on how complicated it is to make.

The spot price for a pound of cotton on the ICE Futures exchange hit $194.93 US on Wednesday. In March 2009, it was trading below $60 US.

full:
http://finance.sympatico.ca/home/que_cl ... e/9d110e66

well theres some inflation !

[Tntbw Profile]

We are in for a rude awakening this year with inflation. Most people have no clue what is coming.