Cotton Update. Hosted by United States Fashion Industry Association (USFIA) and Cotton Incorporated

Transcription

1 Cotton Update Hosted by United States Fashion Industry Association (USFIA) and Cotton Incorporated September 27, :00 P.M. Eastern/11:00 A.M. Pacific

2 At any time during the presentation, you may enter your questions here:

3 Cotton Incorporated Cotton Update 3

4 Cotton Incorporated Cotton Update Resources for USFIA Members for their Cotton Business Facts and Science Behind the Microfibers in the Ocean Issue Current Directions in the Cotton Market 4

5 Cotton Update Key questions for your company: How can we stay up to date with innovations in cotton? How can we access information to guide product development, cut lead times and reduce cost? How can we ensure our staff are the best trained and knowledgeable about textiles, and prepared for vendor negotiations?

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20 Sustainability and Traceability Frequent topics and questions Intersection of sustainability efforts along with product development and sourcing Cost savings in sourcing and product development

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22 Aquatic Biodegradability of Microfibers 80 Aquatic Biodegradation Preliminary Results Cotton % Biodegradation Polyester Days

23 Available on cottonworks.com

24 Available on cottonworks.com

25 Available on cottonworks.com

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27 Cotton Incorporated Cotton Update Resources for USFIA Members for their Cotton Business Facts and Science Behind the Microfibers in the Ocean Issue Current Directions in the Cotton Market

28 Cotton Market Update Key questions: What are the current levels of cotton prices in the market? Why are cotton prices at their current levels? How are changes in raw material prices moving through the supply chain? What are the factors shaping the direction in cotton prices?

29 What are the current cotton prices? The Cotton Calendar Northern Hemisphere Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PLANTING 2017 GROWTH HARVEST New Crop Cotton 2017/18

30 What are the current cotton prices? The Cotton Calendar Northern Hemisphere Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PLANTING 2017 GROWTH HARVEST New Crop Cotton 2017/18 Mill Deliveries and Exports 2018 PLANTING GROWTH HARVEST New Crop Cotton 2018/19

31 What are the current cotton prices? Cents per lb 240 'A' Index January 2008 September Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18

32 What are the current cotton prices? Cents/lb 105 A Index January 2 September 26, Strong Demand for US Exports Lack of rain in Texas Rising forecasts for world cotton consumption Good production forecast for 2018/19 75 Wed 3 Jan :29:03 Wed 31 Jan :31:42 Wed 28 Feb :34:46 Wed 28 Mar :29:20 Fri 27 Apr :29:04 Tue 29 May :39:46 Tue 26 Jun :30:07 Tue 24 Jul :29:53 Tue 21 Aug :30:16 20-Sep

33 Why are cotton prices at their current levels? Cotton Fundamentals World Cotton Balance Sheet (millions of bales) 2017/ /2019 September Estimates Beginning Stocks Production Mill Consumption Ending Stocks USDA September 2018

34 Why are cotton prices at their current levels? Major Cotton Producers Millions of bales India China USA Brazil Pakistan Rest of World

35 Mill Consumption of Cotton in Leading Countries millions of bales Vietnam Turkey Bangladesh Pakistan India China

36 Why are cotton prices at their current levels? Cotton Fundamentals World Cotton Balance Sheet (millions of bales) 2017/ /2019 September Estimates 2018/2019 May Estimates Beginning Stocks Production Mill Consumption Ending Stocks Stocks/Use Ratio 68.0% 60.6% 66.8% USDA September 2018

37 Why are cotton prices at their current levels? Cents/lb Ending Stocks/Use Ratio for World Cotton A Index Stocks/Use Ratio (inverted) July 2000 July 2001 July 2002 July 2003 July 2004 July 2005 July 2006 July 2007 July 2008 July 2009 July 2010 July 2011 July 2012 July 2013 July 2014 July 2015 July 2016 July 2017 July 'A' Index S/U

38 What are the factors shaping the direction in cotton prices? Millions of bales Largest Cotton Exporters Australia India Brazil USA 2018/ /2018

39 What are the current cotton prices? Prices for Cotton in China and India September 27, 2018 Cents / lb A Index Chinese Cotton Index India domestic Source: Cotton Outlook, CCI type 3128B, India domestic 9/24/18

40 How are changes in raw material prices moving through the supply chain? A Index and Yarn Index Cents/lb 'A' Index Yarn Index Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Index 2005=100

41 What are the factors shaping the direction in cotton prices? The Cotton Calendar Northern Hemisphere Futures Prices Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PLANTING GROWTH HARVEST New Crop Cotton 2018/19 Mill Deliveries and Exports 2019 PLANTING GROWTH HARVEST New Crop Cotton 2019/20

42 Available on cottonworks.com

43 Cotton Incorporated Cotton Update Resources for USFIA Members for their Cotton Business Facts and Science Behind the Microfibers in the Ocean Issue Current Directions in the Cotton Market

44 Questions? For additional questions and information: Phone:

45 Calendar of Events October 2: October 4: October 11: November 7: How to Fight the Trade War: The Exclusion Process How to Fight the Trade War: The Broker s Perspective How to Fight the Trade War: Triage Your Supply Chain Apparel Importers Trade & Transportation Conference Register now at: