On the 12 November I wrote about cotton prices being a bubble (https://ravendragon.wordpress.com/2010/11/12/cotton-prices-are-a-bubble-all-bubbles-burst/), and pointed out the bubble like shape of the cotton price chart. I suggested that this particular bubble (like all bubbles) would burst at some stage.
Check out the chart below. Since that writing on the 12th November, cotton futures are down 20% from their height.
I cannot pinpoint one specific reason (other than common sense finally kicking in!), but I’ve read that measures have been taken by the Chinese authorities to temper speculation in the commodities market, especially in cotton.
As an analyst you hope to be right more often than not. So while I’m not trying to brag, it is nice to get it right…. sometimes.