Cotton futures fall precipitously in last fortnight (supply *and* demand falling)

[phantom power]

Economic shut down.

In the case of cotton this energy debacle is affecting both supply and demand. On the one hand it becomes much more expensive to grow a crop and we wonder how growers will be able to stay ahead if prices remain at 70 cents/lb. On the other hand we have textile mills that face a similar problem since they use a lot of energy to produce and transport yarn and fabrics. Without the ability to pass on these increases, we may lose bales on both sides of the balance sheet. Crop production will probably continue to decline next season, but mill use could also drop as consumers retrench and some mill capacity is being idled.

http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=59691

[Gman]

1. As I drive throughout South Texas

and I drive everywhere essentially south of I-10 including Corpus Christi and the Rio Grande Valley, I'm seeing corn fields now where there used to be cotton. I'd say a good 50% of the fields in South Texas that once raised cotton are now raising corn.