Cotton prices continued their see-saw ride in June, rising more than 4 percent in the month after a 3 percent drop in May that followed a more than 4 percent increase in April.
So far this year, prices have risen by almost 7 percent, though they 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 increased by two-and-a-half cents per pound to $0.649.
Although there was no major change in market conditions that explained the spot price movement, many in the industry are viewing the current crop year as a period of transition following the reforms in Chinese policies emphasizing increased use of reserve supplies and sharply lower imports.
The world production estimate for the current season decreased by 415,000 bales to 118.9 million, primarily due to a reduction in the Indian crop forecast. Global mill-use figures remained unchanged, however, at 111.5 million bales, resulting in slight adjustment down in world cotton stocks to 110 million bales for the 2014-2015 season, 8 percent above last year’s level.
Estimates for the 2015-2016 season reflect the expectation that world cotton production will decline by 7.6 million bales to 111.3 million. 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 huge cotton reserves stock. The country is expected to import only 6 million bales of cotton in the 2015-2016 crop year, two-thirds of the current year’s level.
LevaData is tapping the power of AI to make strategic sourcing and procurement more seamless for apparel industry members.Read more
Samples, it seems, may soon end up on the endangered list if 3D modeling technology continues to improve and provides the industry with a way to cut down production timelines.Read more
Abercrombie & Fitch continues to rely on Hollister gains, while positioning the Abercrombie brand for similar success. Gap sales up on Athleta, Old Navy performance.Read more
The domestic textile industry and apparel importers have often been on opposite sides of U.S. trade issues, but in today’s political climate they seem to have found some common ground.Read more
U.S. employers added 261,000 jobs in October, pushing unemployment down to the lowest rate since the halcyon days of late 2000.Read more
While everyone’s been focused on the "retail apocalypse," the real story to emerge from 2017 might be the strange bedfellows that have emerged as everyone tries to plot a course forward. The recent partnership between Walmart and Lord & Taylor is the latest to get people talking.Read more
J.W. Anderson’s chief executive, Simon Whitehouse, is exiting the company, plus Dick's Sporting Goods tapped Paul Gaffney as its new CTO.Read more