Food And Clothing Prices Will Be Worst Hit In 2011.

Last year, conservative critic Golombek (Glenn Beck) warned his readers to rush to buy clothes for their children. He predicted that cotton prices would rise substantially. As usual, his assertions were laughed at mercilessly. Recently, however, the price inflation association has announced that cotton prices have risen by 54%, although huge commodity price increases have not yet affected the shelves of American stores.

Jones, President and chief executive officer of Wesley group (R. Card), said: "this is really an option, and the price has gone up." (R.) The company came after Anne Klein, Nine West, and other brands.

New York Times reported that the Bon - Ton chain increased its price of its own brand fashion products by 1 US dollars this spring, and prices will continue to rise in autumn. The company is moving from 100% cotton products to a higher proportion of acrylic blended goods, such as sweaters. Levi s said that the company has raised its price, and the price may be higher next year. Han Bai said that the price will be raised in February, and if cotton can not be lowered, the company will continue to raise its commodity prices.

Other garment manufacturers acknowledge that they are trying to prevent price rises this year, but they can not prevent prices from rising next year. V.F. company produces North Face clothing, the company claims that next year the cost may increase, especially the cotton denim clothing series. Price increases may be greater than one digit.

Sharon Johnson, a senior cotton analyst at first capital group, said that the reason for the rise in cotton prices was due to supply and demand factors. It is impossible for world cotton production to catch up with cotton consumption within two years. As cotton demand declined during the recession, cotton stocks fell to a low level. Meanwhile, floods in Pakistan and bad weather in India and China have led to damage to cotton.

During this period, the demand for cotton increased again. New York Times said that as the US economy began to recover, clothing manufacturers and retailers placed orders to increase inventories and stimulate more demand. Price rises, and speculators enter the market to raise prices.

Luis Anna Demandeville independent cotton analyst Mike Stevens explained that so far, the market development situation shocked the most senior traders. Global textile mills are entering panic buying so that they can continue to produce. {page_break}

Some people think that seeing the light at the end of the tunnel, but Professor Walton, Professor of marketing at University of Pennsylvania's School of business in University of Pennsylvania, says that the real big body is hedging prices. They are basically locking prices, like Southwest Airlines is locking in fuel prices. There will be cotton next year, he speculated that people will expand their cotton plants because of the shortage of cotton last year.

NIA said, however, cotton As with all goods. Runaway inflation Influence.

Gerrard and Adams of NIA point out that "the US government is trying to solve every economic problem, but the US government always creates two or three more catastrophes. As we predicted in December last year, the US dollar index rebounded in early 2010, but then entered the free fall movement. Bernanke's two quantitative easing (QE2) may accelerate this free fall campaign, leading to a complete collapse of the US dollar.

Adams's written report said that the Fed's $600 billion quantitative easing led to rising costs. He believed that food and Clothing price Will be in 2011 Suffer The most serious Of strike 。

New York Times wrote: "sportswear company Lululemon Athletica is spanferring production from China to Vietnam, Kampuchea and Bangladesh, where wages are low, and Bon – Ton benefits from tax cuts in Egypt and Nicaragua."

Similarly, clothing companies are reconsidering the allocation of certain products to reduce the amount of cotton used. For example, Liz Claiborne produces Juicy Couture and Kate Spade. Instead of using Italy fabrics, the company turns to supply countries that can produce their own materials or produce their own yarns.

Bon-Ton changed from a cotton based sweater to a blended fabric sweater, such as rayon and synthetic fibers.

Johnson of first capital group claims that manufacturers' response to rising cotton prices may have a longer negative impact on the cotton market. She said: "we may be training a new generation of more acceptable synthetic fibers. In the long run, this may hurt the cotton market."