The Price of Cotton

Dear valued customer,

 

Last month we sent out a notice regarding the worldwide cotton price increases and how they are affecting all retailers of cotton products. The latest information has just come in and we continue to see tremendous inflationary pressures on the price of all goods made of cotton. The price for raw cotton has more than doubled over the past year and the forecast is not improving.

 

There is a great deal of speculation going on in the cotton market as China continues to consume 50% more cotton than they can produce, yet they have recently reduced their cotton production by as much as 20%. Add to that the recent flooding in Pakistan, India and now Australia (which are major growers of cotton) and there is little relief in sight.

 

The result is that a year ago, the price for raw cotton was right around $ 0.70 a pound, and right now the price is $ 1.43 a pound and the futures contracts are closer to $ 1.50 per pound. We believe that these prices are unsustainable and eventually the supply side will catch up to the demand but for now the cost of cotton remains high.  

 

This will not be an easy year for retailers as their inventories start to sell down and they have to replenish their stocks. This will be across the board with all products made of cotton experiencing the same pressures.

 

It is important that you know that we at Beddington’s refuse to give in to these inflationary pressures and will continue to aggressively search for the very best value on the world market.  For any new orders we place, we request quotes from the three dominant producers of bedding and bath products in the world; China, India and Pakistan. This situation is also very difficult for the factories that we deal with and many in China have refused to even quote on new business until the prices come down to more normal levels.

 

We thank you for your business and want you to rest assured that we work very hard sourcing the best quality materials and suppliers for all of our products from around the world to be able to offer you the very best value for your hard earned dollars.