You Tube

Skip Navigation LinksHome > Industry News
FaceBook Twitter Delicious Digg LinkedIn

Cotton Prices Near Five-Year Low


Driven down this summer by strong U.S. output and weak demand in China, cotton prices are hovering around their lowest level since 2009. After moderating slightly, cotton is priced at 63 cents per pound this week after being around 90 cents per pound earlier in 2014. Meanwhile, cotton futures are trading below the 10-year average of about 74 cents per pound and the 20-year average of 69 cents a pound.

Following seasons of drought, key cotton-growing areas in the U.S. – like Texas – have seen better recent weather. Because of increased rainfall, government forecasters have raised their estimate for U.S. cotton output during the 2014-15 season by 10% to 16.5 million 480-pound bales. Officials in India – the world’s second-largest cotton producer behind the U.S. – have announced production of the fiber is set to climb to an all-time high this season as typical monsoon rains have yet to arrive.

In China, where the government has been stockpiling cotton for years, imports of the commodity fell 42.2% in the first half of 2014 to 1.39 million tons. Along with that trend, the U.S. Department of Agriculture reported in July that foreign buyers had canceled some of their cotton orders. Net U.S. export sales of common upland cotton were cut by almost 2,000 bales during the week ended July 17 alone.

Economic expectations are also pushing cotton prices lower. The International Monetary Fund has reduced its 2014 global growth forecast to 3.4%, down from 3.7%. Cotton is one commodity sensitive to economic forecasts as demand is tied to consumer spending, like apparel. Some analysts believe the overall drop in cotton prices could next spark defaults from mills that contracted cotton at higher prices. With further declines, the price of cotton could even reach a threshold that would allow farmers to receive U.S. government loan repayment assistance.

Sponsored By:

Making You Money: What ASI is all about.

Promotional products, also known as ad specialties, make up a $20.5 billion dollar industry and are used by virtually every business in America. Why? Items like mugs, pens and t-shirts are memorable and provide a better cost per impression for advertisers than almost every major marketing effort like prime time TV, magazines and radio.

With so many businesses buying ad specialties there is a huge opportunity for professionals looking to make great money running a promotional products distributorship. It’s easy and inexpensive to get started and you can work from home.

© 2015, The Advertising Specialty Institute®. All Rights Reserved.

  • A business opportunity to reinvent your career in an exciting field
  • Work at home - for yourself - not by yourself
  • Make money selling ad specialties
  • Partner with a time-tested industry leader
  • Get started instantly with all the tools you need