Cotton prices slid in February, dipping below $0.57 per pound for the first time in more than a year, according to data from the U.S. Department of Agriculture (USDA).
The seven-market U.S. average cotton spot price, which ended 2015 at $0.6262 per pound, plunged by almost 11 percent in the first two months of 2016, $0.56. The low for the year, just over $0.56, was reached in late January. The high of almost $0.65 happened in June.
Soft cotton prices are expected to continue as reductions in both supply and demand grip the world market. The USDA has decreased its forecasts for both global production and consumption in each of the past six months.
In the latest month, the estimate for the world cotton crop was reduced by 172,000 bales, to 101.4 million, down from 119.2 million in the prior year season.
The largest country-level reductions for production have been for India, Brazil and several African countries.
The most current estimate for the world’s consumption was reduced by 1.3 million bales, to 109.6 million. The largest reductions in consumption have been for China, largely because of lack of information about sales of its huge cotton reserves.
The ending stock estimate for the current season is now 104.1 million, a sizable drop from 2014/2015’s 112.2 million bales.
This week, the apparel industry embraced authenticity, celebrated the history of embellishments and contemplated the future of a troubled department store.Read more
In looking more closely at the sourcing company’s Three-Year Plan announced Wednesday, there are three key focus areas that will drive Li & Fung toward the supply chain of the future: speed, innovation and digitalization.Read more
The financial results from category leaders H&M and Lululemon raise questions about their respective markets.Read more
Reimagining fashion isn’t always a solo effort.Read more
VF will focus on elevating its direct-to-consumer business and spending more money in China over the next five years.Read more
A retailers’ interaction with a customer doesn’t end at the buy button.Read more