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Entries in Cotton (3)

Thursday
Mar032011

Cotton Prices on the Rise

Photo Courtesy - Getty Images(NEW YORK) -- With an increase in cotton prices, more farmers may plant the crop this season.

Experts say the price of cotton is at a 25-year high and the push is on to encourage farmers to consider planting this cash crop in their fields. Natural disasters around the world and lower exports are feeding into the demand.   

Across the nation, the cotton landscape is changing this season, because you'll likely see more of it growing.  Agriculture experts are encouraging farmers to plant every acre of cotton they can. Forecasts say the high cotton demand will continue for this growing season.

The Mid-South Farmers co-op says demand for cotton seed has increased from this time last year, but co-op experts say planting into the cotton market too heavily is risky business. 

Copyright 2011 ABC News Radio

Tuesday
Feb152011

Clothing Prices Expected to Rise by 10 Percent

Photo Courtesy - Getty Images(NEW YORK) -- Low inflation, cheap overseas labor and low materials cost have kept clothing prices in the U.S. low for years but those bargains may soon be coming to an end.

Retail and consumer experts at Strategic Resource Group say clothing prices are projected to go up by 10 percent or more as the year goes on, with the biggest increase expected to occur during back-to-school time.  The price hikes are due to the price of cotton doubling over the past year and a steep increase in the cost of creating synthetic fabrics.

Virtually all of the popular brand names will be affected, including Levi Strauss, North Face, Nautica, Wrangler and Lee.

Hardest hit will be those retailers catering specifically to middle- and lower-income shoppers, who will likely shy away from paying more for clothing and accessories.

Copyright 2011 ABC News Radio

Friday
Nov122010

Cotton Prices Surge; Consumers Warned to Brace Themselves

Photo Courtesy - Getty Images(NEW YORK) -- The rising cost of cotton, the "fabric of our lives," is alarming textile manufacturers and may soon affect consumers' wallets.

Heavy summer rain and flooding in China and Pakistan, the world's largest and fourth largest producers of cotton respectively, caused shortages across the world.  Fast economic growth and corresponding demand for raw materials from emerging markets have increased the price of cotton and other commodities like gold and soybeans.

"Right now cotton is in unchartered territory," said Matthew Hall, spokesperson for Hanesbrands Inc., which includes underwear and athletic apparel brands like Hanes, Champion and Wonderbra.  Cotton prices began to rise in July as the dwindling supply became evident to commodities traders and the apparel industry, and have risen about 50 percent since then.

Last month, the price of traded cotton commodities reached $1.20 per pound on the IntercontinentalExchange, the highest price since 1870.  Also, the Federal Reserve's bond-buying program announcement last week and lower bond yields have attracted investors towards the higher returns of raw materials trading.

Because the clothes in retail stores are made from cotton bought months ago, consumers will not see price increases until today's cotton makes it down the supply chain.

The actual price increase consumers may see depends on the various players involved in producing cotton clothes, such as farmers, textile mills, manufacturers and retailers.

Copyright 2010 ABC News Radio







ABC News Radio