Cotton price rise to hit clothing
Sunday 27 September 2009
Raw cotton prices are set to soar by 20 per cent, according to industry experts, hurting margins at the world’s leading clothing retailers.
Cotton has been badly hit by the commodities collapse, at times dipping below 50 cents a pound since a high of 95 cents in February 2008. The fall has boosted retailers, who have been looking to offset profit cuts caused by consumers searching for bargains. The price has since steadied at around 60 cents, although this still means that cotton is a loss-making crop for US farmers. Typically they break even at 70 to 75 cents.
The US is the world’s third-biggest cotton producer, behind only China and India. However, many farmers in the 17 states in the cotton belt have switched production to more profitable crops, such as corn and soya beans. This change has started to cause a cotton shortage, which should boost prices. Cotton and polyester are the leading fibres in the clothing market. UK retailers imported $22.3bn (£13.9bn) of garments in 2008, so are sensitive to price changes in both materials
- 1 What if 35 Palestinians had died, and 800 Israelis?
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 The secret report that helps Israel hide facts
- 4 'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
- 5 Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
A former custard factory, a Midlands bog and a Leeds cemetery all included in top 50 hidden spots in the UK
Disney heiress Abigail disowns her share of family profits in West Bank company
'Women should not laugh in public,' says Turkey's Deputy Prime Minister in morality speech
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Ross Burden dead: MasterChef and Ready Steady Cook star dies at age 45 after suffering from cancer
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Boozy, ignorant, intolerant, but very polite – Britain as others see us
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
- < Previous
- Next >
iJobs Money & Business
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...
£400 per day + competitive: Orgtel: Liquidity Reporting - Basel III - LCR - Ba...
Negotiable: Harrington Starr: Client Services Associate (Microsoft Office, Ana...