The basic idea is that cotton prices have really gone up and that some of the largest suppliers for cloths has made the choice to redo their contracts with some very big names including walmart, Target from one year to every three months.
This means that every three months they can look at price increases in the basic supplies to figure out what the contracts will be in terms of cost to the stores, the qoute given on the CBC radio was bath towels, which the current raise in prices will see right around a 40% percent increase in price in the stores.
Of equal concern to me is this statement..
“Higher cotton prices are also prompting several companies to use more man-made fabrics, Agarwal said. The commodity’s share of the global textile market will shrink to 20 percent by 2020 as mills switch to polyester and other chemical fibers to remain profitable”
Given the price of oil and how it continues to rise, do you really see this being helpful, cause I don’t.
Bottom line, Clothes are going to start costing more, so if you have been putting off getting that new pair of jeans or anything cotton related, now might be a good time to stock up a few extra of your trusty favorites.