Uh-Oh!

The Wall Street Journal reports that prices for raw cotton lately hit a 140-year high. During the last three months the price of our luxury good has risen over 50%.

A pound recently sold in the futures market for about $1.20, which doesn't seem that much, except that $1.198 is the highest price recorded since record-keeping began in 1870.

Memphis Cotton Brokers

Why is cotton so high in 2010? Supply and demand. Droughts that have ruined harvests in China and increasing demand from up-and-coming consumer societies nudge the prices up.

I doubt that comparing the price in 2010 and 1870 is good economics (or good reporting) since there doesn't seem to be adjustment for inflation in comparing prices. $1.70 in 1870 was a chunk of change.

But the important number is that the raw material increased 50% in cost in a few months...you can see where we are going.

Gardeners

This photo is actually captioned:

 "Picking cotton is one of the most easily learned occupations for women..."

Like the other period photos here it's from the collection of the Library of Congress.

Hoarder

I hate to inspire wide-spread panic or hoarding---but isn't that the duty of us bloggers? Don't quit your dayjobs yet. You might need some extra pocket money.