ICE Cotton Margin Hike Backfires, Sends Cotton To All Time Record High

Tyler Durden's picture

Earlier, the ICE once again engaged in the now traditional margin hike of any surging commodity in an attempt to force longs to sell out of speculative margin positions. Only a funny thing happened as a result: instead of killing the price, the price of cotton surged to $1.935, the highest price ever, as apparently those impacted were on the short side, inciting a short covering spree. A retest of the $2 psychological price barrier is now guaranteed and is on next week's docket. But don't worry, a 100% price jump in the key ingredient of clothing in 6 months will not have a margin impact for consumer discretionary companies. None at all. Sarcasm aside, what the take home message here is that exchange margin hikes no longer have an even short-term adverse impact, and in fact are accelerating price gains to the upside.

And the ICE's failed attempt at temporary price controls (link)

h/t pino

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
jus_lite_reading's picture

The main point is, the more they try to manipulate the free markets, the more damage they do. Period. That is why the game is over.

Stock up on supplies and ammo now.

SheepDog-One's picture

No question...the tighter they squeeze the more oozes out of control...someone stop these madcap central planner idiots!

Got the supplies and ammo covered, saw this not going well at all long ago.

jus_lite_reading's picture

We hope the sheeple wake up before that occurs.

Rusty Shorts's picture

 - everybody together now...


Jump down

Turn around

Pick a bale of cotton

Jump down

Turn around

Pick a bale of cotton



StychoKiller's picture

"The more you tighten your grip, the more star systems will slip through your fingers." -- Princess Leia

financeguru500's picture

You are correct. In a real free market, the rich wouldn't have been allowed to accrue over 50% of the nation's wealth while 40% of the nation has less than 1% of the wealth. The market would have corrected itself a long time ago.

whatsinaname's picture

I hope BB wears silk underwears and not cotton 'cause he's going to need a lot of them in the next few months and years to come !!

ElvisDog's picture

Hmmm, have to disagree with your statement. In a free market, the rich have competitive advantages (e.g. Warren Buffett) that lets them accumulate more wealth. That being said, what we have in the world now is more like organized crime where the system of corruption is designed to have wealth flow to the wise guys.

Azannoth's picture

Wealth flows according to Ideology not merit

-Michelle-'s picture

I went to Joann Fabric a few nights ago for a sewing class.  The instructor spent a good ten minutes advising us to stock up on cotton prints while we can because "the days of $3.99/$4.99/$5.99 cotton are gone."  She also said that while we'll be paying $8 or $9 a yard for cotton, we'll be "seeing through it."

Out of a class of four, I was the only one who didn't look shocked.

SheepDog-One's picture

Already stocked up on a bunch of Carhart jeans and shirts, boots, socks, all of it. 

-Michelle-'s picture

I've been bookmarking patterns for kids' clothing created from mens' t-shirts and button-downs.  There's a pretty big movement out there for repurposing old clothing already.  I imagine it's only going to get bigger.


Snidley Whipsnae's picture

Same here including Red Wing boots and socks, Levis, LL Bean flannel shirts, etc, and surprise, a few of the items are still made in USA.

Buy some clothing that real work can be performed while wearing...without the clothing coming apart the first time it's stressed.

Testicular Cancer's picture

I am waiting for the day this happens to gold & silver.

pazmaker's picture

I find most my clothes at Goodwill and Salvation Army...Price have remained the same so far.. $4.00 for a dress shirt  $8.00 for pants and jeans!

Snidley Whipsnae's picture

I buy used Levis jeans, and other brands, at local flea markets for .50 up to $2. Most are barely used.

I buy in sizes 30 - 38. These are great barter material...and real work can be accomplished while wearing them. 


Zero Govt's picture

i've over 200 t-shirts in my collection, think this cotton spike makes me a millionaire!!!

Snidley Whipsnae's picture

I have more than 150 Harley Ts from various dealerships and as many from biker bars and...even some that make no statement. lol

Rusty Shorts's picture

I've got to get back to West Africa, they've got all of our vintage T-Shirts !!


 - check out the "Click Here for more T-Shirts" on above link.

whatz that smell's picture

time to go commando, bitchez.

The Limerick King's picture

Looks like you've answered your own question....

Lone Mad Minute Medic's picture

When will they ever learn?

 7th infantry, Cotton Balelers. Who Rah!

Ancona's picture

Bring it on!!

We don't need no stinkin T-shirts no more!

We'll all just go naked.

Dapper Dan's picture

Chris Lee out of NY is formally on board with it.

jus_lite_reading's picture

And wheat continues its steady climb up... anyone see the article about the general strike in Israel over the 134% increase in the price of drinking water and 10% increase last year in the price of bread? 10% may seem insignificant, but two things to take note of- that price increase occurred before wheat jumped 70% and that increase represents a staple over the long term. Houston, we have early hyperinflation. Global War is imminent. The EU crumbles first, and furious.

topcallingtroll's picture

Any bad news for Israel is good news for me.  I've hated those fuckers ever since they decided to make Pollard a national hero.

Sudden Debt's picture




whatz that smell's picture

catchy depression-era twist: Olde UnderWair!

...according to Moody's, per OU, an ES peg and an expert-networked pump and dump IPO on eBay followed by a crack-up boom crash will ignite the animal spirits and is guaranteed a price target of Dow 36,000 resulting in a sure 22 bagger.

oh yeah. don't forget to leverage the derivatives.

Hephasteus's picture

When you change your name to Trisky and set up a porn site that the SEC discovers.

WALLST8MY8BALL's picture

Remember - you cant eat underwear, well with one exception....

wherewasi's picture


I'm never sure whether good news is really good or not.  When does the other shoe drop etc?  Could it be that something positive is happening here?  Or will the EPA police stick a knife in it?

Cocomaan's picture

In Pennsylvania we're well acquainted with "fracking", or hydraulic fracturing. 

The results for people living nearby are something else:

Mad Max's picture

Detailed info on the Bakken shale:

Note the potential net recoverables.  1% of a decent resource is, well 1%.  Not exactly the savior of happy motoring.

But I'm sure that the EPA and "liberals" will get blamed anyway, just like Exxon stole the "fish carburetor" and silenced its inventor, etc.

SheepDog-One's picture

Up $10 from yesterdays low? March out the central planners for firing squad!

Lone Mad Minute Medic's picture

Go Cammo! Blend in... Take em from the inside. BAL

Vint Slugs's picture

The ICE margin increase for cotton is nothing out of the ordinary when a market shows increased volatility - be it upside, downside or sideways.  The exchange's behavior mirrors that of all other exchanges.  Please go back and look at what occurred during the 1970s commodities cycle which is similar to the current cycle.  Back then exhchanges would raise margin requirements as a course of normal business practice.  They didn't raise requirements in order to shake out long position holders. 

How about stopping all the conspiracy theory stuff that's recently been put up here at ZH about manipulation?  You're sounding like a broken record.

Tyler Durden's picture

You are absolutely correct. Yet no matter how patiently we wait, we fail to see comparable margin hikes in retail and prime broker stock accounts making it even modestly more difficult to engage in irrational exuberance vis-a-vis stocks. Ever.

EscapeKey's picture

...and the reduced Copper margin - the one metal JPM is long - is down to reduced volatility?

GoinFawr's picture

GS is long platinum, any margin hike there recently?

CrazyCooter's picture

The biggest byproduct of a copper mine is ... wait for it ... silver. Copper price to the moon will have Cu mines going full tilt ... and pushing Ag production with it.


jus_lite_reading's picture

The point is margin hikes are used as price controls, and yet prices are increasing on a daily basis due to inflationary pressures. Volatility indicates something is brewing up or down, thus the margin hikes.


What TD prints here is not some conspiracy theory hogwash you'll find on other sites. Take it with a grain of salt and for what it is worth. Use your knowledge about how the markets work to sift through it all. That means enjoy the sometimes sensational headlines, but absord the real meat and don't be an ignorant biased fool.

GoinFawr's picture

Hey Vint, I don't know if you've noticed but under the light of dogged delving a number of 'conspiracy theories' have been exposed to be entirely valid.

Recurring themes are hardly equivalent to a skipping CD; more like ever strengthening inductive arguments.

 In fact, it's looking more and more like the mainstream have actually been the ones wearing the tinfoil hats all along.

Try to keep an open mind, it's crucial.

eckart's picture

"there are no coincidences...only the illusion of coincidence"

zaknick's picture

Going all the way back to Woodrow Wilson and his bankster supported " progressives", this country's evil elites have been on one long ethnic cleansing, genocidal rampage ( tgey were even behind Hitler and Mengele).

I can prove that assertion. How? By exposing one after another trye conspiracies by the evil elites to hijack this country and its reality.

Want proof? Go to: and read "A brief comment".

Vint? fufufufufufufu

Bob Dylan's Masters of War:

You play with my world like it's your own little toy.

cosmic scale payback is on the way, Vint u little biotch.

GOLD (and Silver 2!)

topcallingtroll's picture

wow.  We have medicines for that level of paranoia.  If you put that energy in something productive you might really be successful some day.

zaknick's picture

I bet the slug is nothing but a troll from some farcist, way overpaid, unionized "homeland" (true echoes of Hitler) .gov employee.

So this and porn is all they do!

topcallingtroll's picture

No.  We checked him at the gate.  He is just trying to point out the alternative viewpoint.  They have to raise margin when volatility increases.

Going Loco's picture

Yeah, that sideways volatility is a big problem. Volatile prices staying the same day after day. Can't have that sort of thing. Market intervention is required.