TV News LIES

Tuesday, Mar 31st

Last update03:43:44 AM GMT

You are here News Economy Speculators drive cotton price volatility, hurting farmers and consumers

Speculators drive cotton price volatility, hurting farmers and consumers

E-mail Print PDF

Speculators drive cotton pricesTexas cotton grower Brad Heffington speaks Wall Street's language of hedges, correlation charts and the like as easily as he discusses weevils and pesticides. Yet today his financial knowledge is of limited use.

Heffington's been sidelined from the cotton futures market, thanks to a surge of financial speculators into the market, which originally was designed to protect farmers like him against price shifts.

"It's something I watch but can't use anymore," Heffington said of the cotton futures market, where contracts for future delivery of 50,000 pounds of cotton are bought and sold.

Today, pension funds and Wall Street banks are pouring money into futures markets for cotton, oil, natural gas, wheat, coffee and other commodities. Such financial speculation helped drive an overheated cotton market to record levels of $2.17 a pound on March 7. Before peaking, cotton prices had risen by more than 140 percent in less than 18 months.

More...


Most Recent Related Stories...


Feds aim to protect low-income users of ‘payday’ loans

payday loansEach month, more than 200,000 needy U.S. households take out what’s advertised as a brief loan.Many...

AIG investors' $970.5 million settlement wins U.S. court approval

AIG settlementAmerican International Group Inc (AIG.N) shareholders won approval on Friday of a $970.5 million settlement resolving...

Exposing America's Billionaire Welfare Ranchers

billionaire welfare ranchersAmericans love ranchers: Gritty ranchers, mom-and-pop ranchers, renegade ranchers — especially those who raise livestock on...

$10 Million Subsidy Allows Time Inc. To Cut Over 900 Jobs With No Penalty

Time, Inc.Despite being given a $10 million job-creation subsidy by New York State, Time Inc. will still...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!