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Cotton futures rose for the seventh straight month, the best run since 1959.Whatever the reason for the price increases in cotton (and there have been many stated), the end result is that standard items like Americasstaple workwear, blue jeans, is going to go up by somewhere near 10%."Supply disruptions and soaring costs pushed the industry to draw on stockpiles, which have practically vanished at ICE Futures U.S., with higher prices unable to lure supplies into the exchange-tracked warehouses," Bloomberg said. High prices for the fiber indicate inflation is coming to shirts, blue jeans, dresses, sweats, and so much more.Demand for cotton worldwide "is simply not being met," said O.A. Cleveland, a consultant and professor emeritus at Mississippi State University."Industry group Cotlook on Friday shifted its global outlook for 2021-22 back to a deficit, the second shortfall in a row, citing diminished production in top exporter U.S. and India. More plantings in the coming season have been put into question by soaring costs for crop inputs including fertilizer," Bloomberg continued. Cleveland said the cotton dynamics are "extremely bullish," and the "last time I recalled such a situation, I stopped forecasting futures prices once the market reached $1.50 a pound. Will the May or July futures price ascend to such a level? I do not know. This is a no man's land."It's still unclear how consumers will act when their favorite clothing brand prices continue to rise. But since clothes are considered discretionary spending, there will be a point where consumers will buy fewer of them due to higher prices.May well be good for Namoi.Mick
Cotton futures rose for the seventh straight month, the best run since 1959.
Whatever the reason for the price increases in cotton (and there have been many stated), the end result is that standard items like Americas
staple workwear, blue jeans, is going to go up by somewhere near 10%.
"Supply disruptions and soaring costs pushed the industry to draw on stockpiles, which have practically vanished at ICE Futures U.S., with higher prices unable to lure supplies into the exchange-tracked warehouses," Bloomberg said.
High prices for the fiber indicate inflation is coming to shirts, blue jeans, dresses, sweats, and so much more.
Demand for cotton worldwide "is simply not being met," said O.A. Cleveland, a consultant and professor emeritus at Mississippi State University.
"Industry group Cotlook on Friday shifted its global outlook for 2021-22 back to a deficit, the second shortfall in a row, citing diminished production in top exporter U.S. and India. More plantings in the coming season have been put into question by soaring costs for crop inputs including fertilizer," Bloomberg continued.
Cleveland said the cotton dynamics are "extremely bullish," and the "last time I recalled such a situation, I stopped forecasting futures prices once the market reached $1.50 a pound. Will the May or July futures price ascend to such a level? I do not know. This is a no man's land."
It's still unclear how consumers will act when their favorite clothing brand prices continue to rise. But since clothes are considered discretionary spending, there will be a point where consumers will buy fewer of them due to higher prices.
May well be good for Namoi.
Mick
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