By Tom Stundza – Purchasing Magazine
U.S. cotton prices are rising this month, as global prices are the highest in a decade because world demand is exceeding supply for the second consecutive crop season. The Cotlook A Index of world cotton prices has averaged 70¢/lb so far in 2007-2008 .The price average is 11¢ higher than during the first seven months of the previous year.
As a result of the gap between world production and consumption, world cotton ending stocks are projected to decline this crop season by 9%, or 1.1 million tons, to 11.5 million tons. But some analysts say it could slide as low as 10.7 million tons, further boosting spring and summer prices.
What does this mean for Paper? All our premium 25-100% cotton grades are directly affected by this increase in cost for this fiber. Paper.com tries to maintain level prices, but when raw material costs escalate like this, it becomes nearly impossible
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