Cotton is not only the most widely used cloth in the world but is also considered an affordable choice by many people.
But everything is arranged to change now because the price of high cotton stirred the clothing market around the world, indicating a higher cost for other shirts and clothing makers.
According to a report published by Bloomberg, heavy rains threaten plants in the major growth area A.S.
Including Texas and Delta Mississippi, according to Maxar Technologies Inc.
‘Senior Meteorology Donald Keeney.
The U.S.
is the largest cotton exporter in the world.
At the same time, foreign shipments flow with rising demand in China, top users, and buyers such as Turkey and Pakistan looking for products too.
“Futures are crying, almost touching $ 1 per pound, the level that is not visible since 2011.
Higher prices mean that the cost of making clothes is increasing, which might try to graduate to consumers.
At least, it will be difficult, with discretionary expenses Limited by pandemic and stagnant wages, said Peter Egli, Director of Chicago for Plexus Cotton Ltd.
The price of higher clothing can curb requests, “said the report.
Increased futures also captured several traders with a big short position on ice exchanges A.S., pushing more prices.
In the short term, the obstacle shipping also helps cotton rally.
The U.S.
It has a small harvest last year, and “it’s not easy to get cotton to the factory in a short time,” Jon Devine, economist for North Carolina researchers based in Cotton Inc.
to Bloomberg.
China has purchased more American supply in recent weeks and “equality of raw cotton fibers that are expected to be contained in the import of clothing A.S.
has occurred at the highest level since the 2010-11 price surge” when futures reach the highest record, he added.