A Cotton-Picking Problem

This article originally appeared on RealMoney.com on Sept. 4, 2014 at 10:30 a.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.

Earlier this week, I shared my renewed enthusiasm for poultry stocks Pilgirm's Pride  (PPC)  and Sanderson Farms  (SAFM) . While you might think it has something to do with the continued move up in beef prices, you'd be a little less than half right.

The new driver behind the why is the drop in corn prices due to expectations for a strong harvest this year plus a surplus in China. That said, corn is not the only commodity to have dropped precipitously over the last few weeks.

Cotton -- what used to be the fabric of our lives -- has been falling. It has been replaced for some by synthetics such as Under Armour  (UA) (or, as I tend to only half kid about, semiconductor chips). Cotton prices have also slipped because a large U.S. and global harvest is expected this fall.

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The International Cotton Advisory Committee said on Tuesday that the 2014-15 season, which began Aug. 1, will be the fifth in which production exceeds consumption.

Cotton prices have retreated to the lowest level in nearly five years as investors worry that global production could overwhelm demand for the fiber.

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