Cotton has been on a tear, gaining nearly 10% during the last week alone.
Recent strong export demand, especially from China, helped U.S. farmers sell their crop and pushed prices to a two-year high over 75 cents per pound.
The United States is a major cotton grower, ranking third in the world for bales harvested. Unlike the top producers, India and China, who keep their cotton for domestic textile industries, over 70% of U.S. cotton is exported, making us especially dependent on foreign demand.
Longer term, some analysts expect that the rally could fizzle out as clothing manufacturers look to cheaper substitutes and growers increase production to capture higher prices.