In reaction to rising cotton prices, farmers are planting more cotton, with U.S. farmers in California doubling the amount of cotton they planted two years ago, Bloomberg reports. This could help drive down prices next year, analysts predict.

But for this year at least, the continuing rise of the price of oil could force up transportation costs, which could again be felt in supply-purchasing budgets.


And with a weakening dollar and gradually thawing economy, oil prices are poised to hit $100 a barrel this year, an important psychological cut-off, according to analysts.

Oil hasn't risen above $98 since Oct. 2008, when the financial crisis started, according to reports. Now it's trading at $91.74 in New York.

Fleming said oil prices typically peak over the summer.

"If we don't start ticking back down, we'll certainly be well over $100 a barrel by summer."

According to U.S. Energy Department projections, this year demand will increase by about 1.7 percent to reach 87.8 million barrels a day. But don't wait for OPEC to open the taps, industry watchers say, as it promised to rein in production two years ago.

"I'm very cautious about his year," Fleming said. "When I look at budgets, I think people need to be prepared."


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