Cotton and Coffee Continue To Soar
This morning cotton has made a new all time high on the trading session. Cotton futures(CT H1) is once again higher by 7.00 points to $204.45. The iPath Dow Jones-UBS Cotton Subindex Total Return ETN(NYSE:BAL) is trading higher $3.47 to $107.43 a share. BAL has increased higher by 200.00 percent since mid-July 2010.
Coffee is also rallying higher this morning. Coffee futures(KC H1) are trading higher by $3.40 to $262.05. The iPath Dow Jones-UBS Coffee Subindex Total Return ETN(NYSE:JO) is trading higher 0.38 cents to $70.16 a share. JO is now trading higher by nearly 100.00 percent since June 2010.
These higher commodity prices are certainly signs that inflation is in this market despite what the Federal Reserve says. Traders and investors must be prepared for possibly higher prices in the short term as these two soft commodities remain very strong on the charts at this time.