Clothes could get more expensive as cotton futures trade at highest price in about 10 years – FOX 10 News Phoenix

PHOENIXClothing may become a bit more expensive, as cotton prices surge.

Currently, cotton futures are trading at their highest price in about a decade. Cotton typically runs about 70 cents per pound, but now, it is more than $1 a pound.

“We have some of the purest white cotton in the nation and around the world, and that’s why our Arizona cotton is very popular globally,” said Julie Murphree with the Arizona Farm Bureau.

Murphree said the main reason for the uptick in price is supply chain issues, namely, not being able to get product to where it needs to go. Murphree says there has been a 22% increase in price, in the last two weeks alone.

“Well, cotton today — the price, I think the last time I checked a day ago, it was $1.05. On Tuesday, it was $1.09, so there’s daily fluctuations in the futures market,” said Murphree. “Because the disruptions in the supply chain are not going away for awhile, I wouldn’t be surprised how high that goes.”

Other factors leading to the 10-year high prices, including the crop in drought stricken areas, and a new trade policy with China. In the end, the price will eventually be passed down to consumers.

“For our farmers, the reality is because China is purchasing so much of our cotton fiber, the prices are higher. That’s good for our farmer. He has to operate at 65 to 70 cents to break even, so when we get cotton prices — I think on Tuesday, they were $1.09 — this is good for him because he can actually make a profit and reinvest in the crop for next year,” said Murphree.

There is currently 115,000 acres of cotton in production in Arizona, and it is in great condition. It will be harvested in the next month, and will surely be sold the next.

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