The price of cotton seems to have stabilized from the surge of $1.25 per pound caused by the COVID-19 and China's trade war, but now the bulk commodities in the fashion industry are subject to inflation and global commodity prices
The impact of the problem.

According to data from the US Department of Agriculture (USDA), as of the week of July 14th, the average price of spot cotton in the United States was $1.03 per pound. The weekly average price has decreased from $105 the previous week, but is higher than the 85.02 cents in the same period last year. The US Department of Agriculture reported that the Intercontinental Exchange (ICE) settled the price of pigs at 91.41 cents in October, down from 99.82 cents last year.

The price of cotton seems to have stabilized from the surge of $1.25 per pound caused by the COVID-19 and China's trade war, but now the bulk commodities in the fashion industry are affected by inflation and global supply and demand problems. According to data from the US Department of Agriculture (USDA), as of the week of July 14th, the average price of spot cotton in the United States was $1.03 per shred. The weekly average price has decreased from $105 the previous week, but is higher than the 85.02 cents in the same period last year. The US Department of Agriculture reported that the Intercontinental Exchange (CE) settlement price for pigs closed at 91.41 cents in October, compared to 99.82 cents last year. A new quarterly report from CoBank's industry knowledge exchange states that people are concerned that the slowdown in the global economy will suppress demand for cotton, leading to a 35% drop in cotton futures prices in December 2022 from the high point in mid May

However, economists at CoBank believe that concerns about a sharp drop in cotton demand may have been overstated. They pointed out that as of April, the sales of retail clothing stores increased by 15% year-on-year, far exceeding the 5.8% increase in clothing prices during the same period.

According to a report by coBank, the share of cotton fiber used in clothing has rebounded after more than a decade of decline. The textile exchange stated in a recent report that cotton accounted for 24% of global fiber production in 2022, compared to 52% for polyester. In last week's Cotton Dragon market analysis report, senior economist Tian Si DeVine wrote that benchmark prices had already dropped significantly within a day of trading. Vine pointed out that futures contracts on the New York State Exchange depreciated by 30% just a few days before expiration in July, dropping from $1.44 per pound on June 22 to $1 per pound on June 24. The timeline for the December New York State Exchange futures crash was slightly longer, from June 17 to July 6, during which the value of December futures fell by 25%, from $1.2 to 90 cents.