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China Uncertainty Flattens February Cotton Prices

When it’s deliver-or-die, supply chains become the lifeblood of a company. To that end, the fashion industry has embraced technology to navigate today’s hyper-complicated supply chain, with myriad solutions shaping the first, middle and last mile. Call it Sourcing 2.0.

Cotton prices rose slightly in February and then slipped, ending the month flat at 82 cents per pound amid continued uncertainty around China’s new cotton policy.

The seven-market U.S. average spot price remains well off the 12-month high of 89 cents reached in August.

A new industry estimate for 2014/2015 production puts total projected global supply slightly ahead of demand, with total output declining in China but rising in the U.S.

Uncertainty remains as to how and when the Chinese government will decrease or cease its cotton buying program, which was implemented to support domestic prices. Some reports say that China will begin selling off some of its large state reserves, and that import quotas will be reduced drastically.

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