Assessment: March cotton futures in New York rose as much as 2% to $1.26 per pound, the highest since June 2011. Prices are up for the seventh straight quarter, the longest streak since 1959 …
The global fashion industry is on the rebound as BMO Capital boosted Under Armour’s rating to Outperform from Sector Perform. Fashion retailers breathe a sigh of relief as demand picks up but comes at a high price for consumers.
This year, about two-thirds of fashion executives expect to increase costs due to snarled supply chains. Average prices are expected to rise about 3% across all clothing and apparel, according to the State of Fashion 2022 report by the Business of Fashion and McKinsey & Co.
About 15% of respondents said clothing and apparel prices could jump by more than 10%.
“You have planted much, but harvested little. You eat, but never have enough. You drink, but never have your fill. You put on clothes, but are not warm. You earn wages, only to put them in a purse with holes in it.” Haggai 1:6
Inflation in fashion hasn’t just been due to transportation bottlenecks and rising shipping costs but also rocketing commodity prices. Bloomberg reports cotton futures have soared to a decade high on Monday due to a “global deficit of the fiber squeezing mills holding huge short positions.”
March cotton futures in New York rose as much as 2% to $1.26 per pound, the highest since June 2011. Prices are up for the seventh straight quarter, the longest streak since 1959.
“Supply disruptions and soaring costs pushed the industry to draw on stockpiles, which have practically vanished at ICE Futures U.S., with higher prices unable to lure supplies into the exchange-tracked warehouses,” Bloomberg said.
High prices for the fiber indicate inflation is coming to shirts, blue jeans, dresses, sweats, and so much more.
Demand for cotton worldwide “is simply not being met’ …
Read More @ Zero Hedge HERE
Inflation Comes For Your Closet: Cotton Prices Hit Decade High Amid Global Deficit https://amos37.com/inflation-comes-for-your-closet-cotton-prices-hit-decade-high-amid-global-deficit/