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Cotton prices have risen nearly 30 percent this year, and no end to the price hikes appears to be in sight, according to a Wall Street Journal article.
Officials in India, according to the article, recommended that the government maintain its current export cap of 5.5 million bales — although it’s estimated the country will harvest 32.9 million bales through September, a 12 percent increase. India is the world’s second-largest producer.
Cotton for March delivery rose 3.9 percent to $1.8758 a pound on ICE Futures U.S., WSJ said, closing in on the $1.89 record hit during the Civil War. Prices surged the exchange-permitted daily limit of $0.07 a pound, it added.
The run-up was largely attributed to speculative buying, not the textile industry, it was reported.
While various apparel makers have already announced price increases because of rising fiber costs, the article noted that prices for consumers may rise even further later this year. Because of the six-month turnaround from harvest to garment fabrication, much of the cotton used in clothing sold today was priced around $0.85 a pound, less than half the current price, WSJ added.
To read the Wall Street Journal article, click here.