Cotton supply growth drops prices

In good news for home textiles suppliers, who surely can use some, downward pressure is being put on cotton prices by stepped-up plantings in the Northern Hemisphere, which is getting a big lift from favorable weather conditions.

The International Cotton Advisory Committee (ICAC), a consortium of world cotton producers, said cotton prices have declined by 2 cents a pound over the last two months, and were 48 cents a pound by the end of May, after falling by 27 percent, or 18 cents a pound, since last December.

With two months left in the current season, the average season-to-date Cotlook A Price Index now stands at 59 cents a pound, with scant prospects for an increase, said ICAC. "Prices are not expected to rebound without a major crop disaster somewhere in the world, or the announcement of significant imports by Mainland China."

The average Cotlook A Index for the 2000/01 cotton season is now expected to average 57 cents a pound, just 4 cents above last year's season average and well below the 10-year average during the 1990s of 72 cents a pound. "Lower prices are occurring even though world ending stocks will fall below eight million tons, a six-year low, by July 31," said ICAC.

And with production expected to grow more rapidly than demand next season as well, cotton prices are expected to remain below 59 cents per pound in 2001/02 as well, said ICAC.

World Cotton Supply and Pricing Forecast
(in millions of tons, except for cotton prices)

1999/00(actual) 2000/01(proj.) 2001/02(proj.)
Source: International Cotton Advisory Council (ICAC)
Production 18.84 18.90 20.07
Consumption 19.78 19.78 20.00
Exports 6.10 5.87 6.30
Ending Stocks 8.80 7.91 7.98
Cotlook A Price Index $0.53 $0.57 $0.59


Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!