Cotton Prices Hit Five-year Low
According to a report by Bloomberg, cotton prices fell to the lowest price since 2009 as China lowers demand. China, the world’s largest importer and grower of cotton, announced that it will restrict shipments next year.
This drop in prices means that clothing such as T-shirts and jeans will be available at lower costs. Brands such as Hanesbrands Inc. and Carters Inc. said that lower cotton prices will be evident in their clothing lines next year.
The U.S., the world’s leading cotton exporter, saw a boost in cotton production this year as rains increase in formerly drought-stricken areas of Texas. The U.S. Department of Agriculture predicts that U.S. cotton production will grow by 28 percent this season.
China’s lower demand for cotton means that global stockpiles of cotton will grow by six percent—an all-time high. Before the beginning of the 2014 harvest, the global stockpile was already at 100.3 million bales, which is a record high and 12 percent higher than 2013. The USDA estimates that the stockpile will reach 106.3 million bales by July 31 of next year.