Consumers are paying attention to the economy, says Cotton Inc. According to a recent survey by Cotton Incorporated, 70% of respondents have a high level of personal concern for the economy with 60% saying they are following inflation news closely.
Cotton markets can rise and fall with economic conditions. Cotton was one of several commodities that suffered a correction in the second half of June. “Prior to the drop, cotton prices had been trading at the highest levels in a decade. The threat of recession can be expected to keep downward pressure on the cotton market,” says Jon Devine, senior economist for Cotton Incorporated.
Participants in the cotton market always face uncertainty stemming from a range of variables each season. Broad economic conditions are a factor that can affect demand, while the weather can pose questions for supply.
Cotton prices, as of July 12, are 95 cents per pound, which remains strong by historic standards, despite the 25% drop, according to Devine.
