Cotton prices continued their see-saw ride in May, falling almost 3 percent in the month following a more than 4 percent increase in April that occurred after a two percent decline in March.
So far this year, prices have risen by about 7 percent, though remain 22 percent below year-ago levels.
According to the latest data from the U.S. Department of Agriculture (USDA), the seven-market U.S. average cotton spot price dropped by almost two cents per pound to $0.624.
However, it is unclear why prices moved, since estimates for supply and demand for the current crop year were nearly unchanged in the month. World cotton stocks are projected to increase 8.2% to 110.1 million bales in the current season. Global cotton mill use for 2014-2015, on the other hand, is forecast to rise by 2 percent above last year, to 111.5 million bales. Although China has started to release large portions of the cotton reserves it stockpiled during the buying program in place for several years to support prices, the expected increase in demand for cotton by Chinese mills has not yet materialized. The country is expected to import 7.7 million bales of cotton in the current crop year, over half last-year’s level.
Government policy in China combined with a slowdown in global demand for cotton has resulted in increases in cotton stocks in China and many other countries, which will continue to put downward pressure on prices, according to the USDA.
Retail is undoubtedly tied to economic conditions—and despite the fact that most retailers can’t figure out how to get shoppers in stores—consumption isn’t the problem.Read more
What can retailers and brands do to stop the race to the bottom when it comes to markdowns?Read more
As technology gains momentum in the retail industry and consumers integrate more devices in their purchasing decisions, disrpution will be key for retailers to survive.Read more
Print PDFPrint PDFThe Times of London and Germany’s Bild newspapers conducted an exclusive interview with President-elect Donald Trump. During the conversation–which covered a range of topics including potentially lifting sanctions on Russia to get them to the table on a nuclear weapons deal and more...Read more
J.C. Penney has teamed with Nike to give its shoppers a new way to answer the call: Just do it.Read more
Cambodia’s apparel and footwear industries are flourishing. But that could change in light of several factors related to Brexit and the country’s overall economic growth, according to a bulletin by the International Labor Organization.Read more
Print PDFPrint PDF“The Fabric of Our Lives” is getting an upgrade. Cotton Incorporated, the research and promotion company of U.S. cotton growers and importers, and Invista’s Cordura brand have teamed up for the first time to create cotton-blend fabrics with Cordura’s performance benefits. The collaboration...Read more