Cotton prices reached a ten-year high, because of what clothes are becoming more expensive, Bloomberg writes.
Cotton futures exceeded one dollar per pound (approximately half a million) – maximum since 2011. Causes are adverse weather conditions, difficulty with transportation and failures in supply chains. The high cost of the fiber will lead to an increase in clothing production costs. Retail merchants can shift these costs for buyers, which will lead prices for all products from cotton, from T-shirts to jeans.
However, as the director of research on Rose Commodity Group Luis Row, cotton will be expensive, and the price per pound is likely to stop at two dollars.
Cotton problems will affect, in particular, in China – one of the largest clothing manufacturer. This is superimed with export problems: the United States refused the Chinese supplies of cotton products due to the scandal about the violation of the rights of workers in the province of Xinjian.