The seven-market U.S. average cotton spot price dropped by 15 percent in July, to $0.6381 per pound last Friday, down from $0.75 on the last Friday in June. This is its lowest level since November 2009.
The precipitous decline began early in the month, after new reports of higher-than-expected worldwide supply forecasts and continued weakening demand for cotton apparel in key markets around the world surfaced.
China, the biggest supplier of the world’s apparel and its largest user of cotton, has been losing key apparel manufacturing programs to lower cost countries like Vietnam and Bangladesh. The country’s government is also sitting on more than half of the world’s reserves of the fiber and has indicated it would begin to release large portions of those reserves to reduce cotton prices and ease some of the cost pressure its manufacturers are feeling.
However, prices are also falling in other worldwide markets like India and Pakistan, and demand is waning causing cotton stock levels to rise even further.
The United States, the world’s biggest cotton exporter, is expected to produce a large crop in the new season, which began last week. After many years of drought conditions, rain has arrived in Texas, the largest U.S. cotton growing region. U.S. government forecasters recently increased their estimate for U.S. cotton output in the new season by 10 percent to 16.5 million 480-pound bales, exceeding prior market expectations. The amount of cotton left over in warehouses worldwide at the end of the season is expected to reach an all-time high of 105.7 million bales.
Even though sustainable fashion is in its beginning stages, some retailers are taking the steps to accelerate the industry’s circular future.Read more
Amazon Go, Amazon's anticipated high-tech retail outpost, is now officially open, allowing shoppers to grab and go—without a stop at the register.Read more
Under the Bangladesh Accord, an unnamed clothing brand has been instructed to address safety issues in more than 150 factories.Read more
Leading footwear manufacturer Yue Yuen plans to sell its stake in retailer Pou Sheng, as part of a plan to take the store chain private.Read more
Luxury firm Richemont, which originally put Net-A-Porter and Yoox together, has plans to acquire YNAP to help it boost its online profile.Read more
Cone Denim's operations in Mexico received OEKO-TEX Standard 100 certification, plus True Fit closed its $55 million Series C investment.Read more
All signs point to wanderlust as a full-fledge character trait of millennial consumers that footwear brands and retailers should embrace.Read more