COTTON – POISED TO FALL BY 50% IN 12 MONTHS
Cotton prices have reached a point where demand is bound to fall sharply in 2011. But that will coincide with bumper supplies as cotton harvesting grows significantly driven by the high price of copper. That “point of inflection” i.e sharp fall in demand and a sharp rise in supply will create a massive fall in cotton prices. And a “perverse supply curve” will take share where the lower the price of cotton, the more those hoarding cotton in inventory will rush to sell
I expect the price of cotton to collapse by 50% in 12 months
Ashu Dutt's Cotton Outlook - December 2010 Edition - See http://www.ashudutt.com/comboombust.aspx
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