Cotton Glut Seen Extending Slump as Levi’s Costs Slide

Cotton Sep 04, 2012 No Comments

CottonCotton warehouses from China to Australia are bulging with the biggest-ever glut, a year after record prices spurred farmers to expand output.

Prices tumbled 16 percent this year.

Harvests will exceed demand for a third year, swelling stockpiles by 10 percent to 74.67 million 480-pound bales by August, the U.S. Department of Agriculture estimates. Inventories in China, the biggest user, will triple over two years to a record as domestic demand slumps to the lowest since 2005, USDA data show. Cotton may drop 12 percent to 67.87 cents a pound by the end of the year, according to the average of 20 analyst and merchant estimates compiled by Bloomberg.

via Cotton Glut Seen Extending Slump as Levi’s Costs Slide – Bloomberg.

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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 Propurchaser.com.

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