Cotton prices edged down steadily in September, falling to their lowest level in six months.
According to data from the U.S. Department of Agriculture (USDA), the seven-market U.S. average cotton spot price declined by more than $0.04 per pound between Aug. 29 and Oct. 2, dropping 2.4% to $0.5846.
Several factors contributed to the decline. For one, the USDA made a slight upward revision to its U.S. crop forecast for 2015/2016, which was expected by many in the trade after a sharp cut in the estimate last month.
The devaluation of the Chinese currency in August and weak demand for Chinese cotton reserves also put downward pressure on prices. Only 6 percent of the 1 million tons offered for sale in the Chinese auction this summer were purchased.
Current USDA estimates put 2015/2016 global cotton production at 108.7 million bales, down from 118.9 million in the prior year. This includes a drop in Chinese production of 4 million bales. Global mill-use is estimated to increase from 111.5 million bales to 113.4 million bales, with most of the increase in demand coming from India. The ending stock estimate for the current season is now 106.3 million, a drop from 2014/2015’s 110.9 bales, but a 1 million bale increase over last month’s estimate.
Although the decline in prices could stimulate demand for cotton fiber, continued economic weakness in China and other key markets will most likely temper that demand.
A look at how companies that failed to react and adapt to changing times have allowed new brands that are better tapped into the zeitgeist to steal share.Read more
Print PDFPrint PDFWhen times are tough, companies are more willing to test new ideas and Target, Warby Parker and Amazon are pushing the boundaries of traditional retail. Target gets in bed with Casper After failed attempts at an acquisition, Target has instead invested in Casper...Read more
J.Crew has been shifting in its seat trying to adjust to a new normal of shrinking sales and growing debt, but nothing has quite yet paid off, so the company is cutting its prices.Read more
It’s official. Coach, Inc. is snapping up shares of handbag brand Kate Spade.Read more
This week, consumers called for better children's apparel, retailers turned internally to remedy their financial woes and apparel incubators improved China's manufacturing sector.Read more
Whether and how much consumers care about sustainability may be an ongoing question the industry wants an answer for, but one thing that’s clear is that though some consumers do care, sustainability isn’t the first thing they think of.Read more
Gymboree tapped former Tilly's executive Daniel Griesemer as its new CEO, JC Penney appointed Marci Grebstein as its new EVP and Wolford creative director Grit Seymour is leaving the company.Read more