Cotton prices have been on a wild ride since January, up one month and down the next, and the see-saw pattern continued in July.
According to data from the U.S. Department of Agriculture, the seven-market U.S. average cotton spot price fell by almost 6.5% in July, down more than $0.04 per pound from June’s month-end price, to $0.6079.
This follows a 4 percent increase in June, which was on the heels of an almost 3 percent drop in May.
Many analysts are viewing the 2014-2015 crop year as a period of transition following the reforms in Chinese policies emphasizing increased use of reserve supplies and sharply lower imports by the world’s largest user of cotton.
The world production estimate for the current season increased by 120,000 bales to 119 million, primarily due to a reduction in the Indian crop forecast. Global mill-use figures dropped by 610,000 bales, however, to 110.9 million bales, primarily due to a drop in Chinese demand, which explains the decline in prices. World cotton stocks are now expected to end the 2014-2015 season at 111 million bales, 1 percent higher than the 110 million previously forecasted.
Estimates for the 2015-2016 season reflect the expectation that world cotton production will decline by 7.6 million bales to 111.3 million next year. Although cotton mill-use is expected to increase by more than 4 million bales, since China is the world’s largest user of cotton, much of this will be supplied out of the country’s sizable cotton reserves. Softer demand is expected next year in Brazil, Bangladesh and Pakistan. These declines will be partially offset by expected increases in demand by Vietnam and India.
Invista and its partner, Solvay, will deploy new technology for nylon expected to substantially improve the production process.Read more
Target is growing its private label lines and tapping into consumers’ wellness-focused wardrobes with its new performance activewear brand, JoyLab.Read more
What to expect for Autumn/Winter 2018-19 denim, plus trendsetting consumers want denim to push boundaries.Read more
European companies are improving their supply chains—and it has almost everything to do with company culture.Read more
Global container freight rates continue to be depressed by demand, despite some recent upticks.Read more
How do global companies and supply chains plan for inevitable but unpredictable disruptions, and how can they mitigate the damage?Read more
As advances in technology and changing trade patterns affect opportunities for export-led manufacturing, innovations such as smart automation, advanced robotics and 3-D printing are increasingly influencing which locations are attractive for production.Read more