Filed under: India, Market Matters, Commodities
Years ago, I remember a conversation among cotton traders: "Cotton is a straight line mover. When it moves it shoots straight up and when it falls its like a stone. ... If you ever get caught on the wrong side of cotton, you'll lose your shirt."
Someday, traders will tell their grandchildren about the great cotton bull market of 2009 to 2011, and how they bought 100 contracts at 60 cents a pound in 2009 and saw the price go to $1.9455 per pound. They will talk for hours about how they made $1.34 per pound on each contract (each 1 penny equals $500). So they made 134 pennies on each contract at $500 per penny times the 100 contracts. They will ask their grandchildren to figure out how much money they made. "Grandpa, you made $6,700,000!"
Continue reading Global Cotton Demand Outstrips Supply
Global Cotton Demand Outstrips Supply originally appeared on BloggingStocks on Sat, 12 Feb 2011 11:40:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments
Full story at http://www.pheedcontent.com/click.phdo?i=63ee04ef1d8dc333ccea16b0b7630340
Posts
1 comment:
I absolutely love reading all that is posted on your site.Keep the information coming. I liked it! Thanks so much for this! I haven't been this moved by a blog for a long time! You’ve got it, whatever that means in blogging. Anyway, You Are definitely someone that has something to say that people need to hear.
Keep up the good work. share tips
Post a Comment