This past year will perhaps be marked as the most difficult year in the history of the cotton industry, especially with everything happening in congruence with the global economic crisis. However, for keen-eyed individuals, opportunities are usually more apparent during these difficult times. The cotton and textile industries have shown extraordinary resilience by surviving many economic and political upheavals. In 2011, its resiliency is again being tested by perhaps the biggest challenge in the past 30 years. In March 2011, cotton futures prices reached an all-time historical high by exceeding the $2/lb mark, followed by a record-breaking drop to $l/lb, in less than five months. Such extreme volatility has caught every player in the industry off-guard and broken many risk-management strategies. Most cotton is contracted months or perhaps years in advance.
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