In March 2011, the price of cotton futures on the Intercontinental Exchange rose to the highest level in history at $2.27 per pound. Before 2010, the price of the fluffy fiber never exceeded $1.1720 per pound, the 1995 peak. A shortage of cotton took the price to the lofty level in 2011. In response to a price that was almost double the prior peak, many garment manufacturers substituted synthetic fibers for cotton leading to an incredible price decline.
Cotton producers increased output dramatically when the fiber moved to over $2 per pound, and inventories grew.