Hurricane Fails to Drive Up Cotton Prices

This is a tough one.  While losing some 700 points from the hurricane driven high, December futures are still hovering near 69 cents and attempting to dig in its heels.  Its efforts will prove fruitless I predict.   The real work will have to the done once the market tests its long term price support at 65 cents.  Further down is the excellent support at 62 cents.  How dare I speak of prices in the low 60’s?  Okay, let talk about the high 50’s then....
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China’s Cotton Subsidy

In October Beijing approved the 2016 Xinjiang Cotton Growing Subsidy Plan Reform Scheme  (2016年新疆维吾尔自治区棉花目标价格改革试点工作实施方案 ). For the current crop year, the target cotton price is ¥ 18,600 (US$2,689), the same as the previous year. However, this year the Xinjiang government will establish a cotton grower dishonest list (棉花生产者补贴失信名单制度). Growers who defraud the cotton subsidy will be added to the list and won’t receive the cotton-growing subsidy the next crop year.
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Outlook 2017: Cotton Balances Supply and Demand

Last season (2015/2016) total world cotton stock declined by 3 million tons. In the beginning of the current season (2016/2017), which started August 1, 2016, the opening stock of world cotton was around 19 million tons, about 80 percent of the world’s total annual mill use. Most of the world’s cotton stock (about 11 million tons) is held by the Chinese government.Worldwide production this season was 22.4 million tons, 1 million tons more than last season, according to estimates by t...
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Denim Searches for Growth in a Stable Market

After enjoying a solid market in 2016, mills are quite optimistic about 2017, despite the intensity of a highly competitive market.“The market has been stable this year and from what I see it is going stay the same next year,” Marcus Fung, director at Unique Denim told Inside Fashion.“The demand for denim fabric is steady, yet people keep looking for more cost-efficient products, and due to oversupply on the fabric side, it still is not easy,” added Andy Zhong, sales mana...
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Why Adding Value to Denim is a Win for Consumers and Retailers

The challenge for most retailers is getting consumers to buy one more pair of jeans. For suppliers it's about getting a little better margins on those jeans, while for consumers it’s all about finding a better fitting pair of jeans.Can we make jeans that meet the increasingly high standards that consumers are setting while at the same making them a more profitable category at retail and thus helping to reduce some of the price pressure upstream? Thanks to ongoing R&D from INVI...
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Logistics Challenge Cross-border B2C e-Commerce

In the first half of 2016, China's cross-border B2C e-commerce transactions reached a total value of US$28.26 billion dollars. It is estimated that by 2020, the value would exceed US$ 100 billion. “We can see the shifts from a B2B to a B2C model and we believe cross-border B2C e-commerce is the way forward,” said Dr. Guo Dongbai, CTO at AliExpress (郭冬白博士,速卖通首席技术官), speaking at the Asian Logistic and Maritime Conference (Hong Kong: November 22-23, 2016).  A...
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Black Friday is Looking a Little Gray

Retailers saw a quieter-than-expected activity on Black Friday (Nov. 25).   In major cities retail sales were bolstered by an influx of tourists who came to take advantage of discounted merchandise, as well as the participate in the season’s festivities.   Cross-border trade helped drive online sales as international shoppers had greater opportunities to grab deal-priced products from American or British online stores.Despite the intense promotions, consumers have small...
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