The Bon-Ton chain is raising prices on its private-label fashion items by as much as a dollar this spring, and prices will go up further next fall. And it is switching from 100 percent cotton in items like sweaters to more acrylic blends. Levi’s says it has already increased prices and may push them further north next year. And Hanesbrands, the maker of Champion, Hanes and Playtex, says price increases will be in place by February, and prices could go up further if cotton prices remain where they are. ...
Cotton inventories had been low because of weak demand during the recession. This summer, new cotton crops were also depleted because of flooding in Pakistan and bad weather in China and India, all major cotton producers.
But demand from China, in particular, was rising. And as the economic recovery in the United States began, apparel makers and retailers placed orders for more inventory, spurring even more demand. As prices rose, speculators entered the market, driving prices even higher.
via www.nytimes.com
I count three: weather, income and expectations. Bad weather decreases supply. Higher incomes increase demand. Expectations of higher prices (due to weather and income) leads to higher prices. I'm not counting low inventories since that only means the planned surplus is low. A low surplus is not a factor changing demand and supply.
*Wouldn't it be great if we could pump out a daily demand and supply?
