As Cotton Plunges, Clothing Makers Revisit Pricing

Cotton Jul 21, 2011 No Comments

CottonThe swing in cotton prices has been particularly evident over the past year. Propelled by bad harvests in Asia and robust demand, cotton more than doubled between last July and March’s $2.1515 a pound peak price, the highest in the 140 years that the commodity has traded on an exchange. But cotton prices have retraced their gains, falling by more than half since early March. Prices for December delivery closed at 98.63 cents a pound on Thursday on the Intercontinental Exchange.

Cotton prices, which surged to historic highs this spring, have plunged 38% so far this month, roiling mill owners and apparel makers.

It’s a reversal for clothing makers that spent the last year grappling with higher costs and how much, if any, could be passed along to consumers. Now, retailers are wondering if lower cotton prices, off 53% since their March 4 peak, will last or if the roller-coaster ride will continue.

“There’s never been this kind of volatility in cotton—ever,” Eric Wiseman, chief executive of VF Corp., the world’s largest apparel company, said in an interview on Thursday.

via As Cotton Plunges, Clothing Makers Revisit Pricing –

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Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website

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