Cotton may force retail prices to rise
Tue, 15 Feb 2011 04:41:22 GMT —
Cotton prices have been rising since the harvest even began in October.
And that could have a big impact on the US retail industry.
The price for cotton started around the one dollar mark when this year's harvest began, and then went up to one dollar and forty cents by the time the harvest was finished.
"A lof of the cotton for 2010 was marketed earlier in the calendar year of 2010 before prices had really started rising," said Shawn Wade, Plains Cotton Brewers, Director of Communications.
But what exactly does that rise mean for the clothing business?
"We're expecting the price to be a 10-12% increase, which at retail is like four to seven dollars on a shirt maybe three dollars on jeans maybe five on jeans before we're done,"said Terry Martin, Owner, West Texas Western Store.
And although it's going to raise prices, this local business owner doesn't think it's all bad.
"Its gonna be good for business in the end, but it's gonna hurt a little bit right at first until people get used to the increase in price."
Wade also said this is not looking like the last increase we are going to see but overall it's good for the Panhandle's economy.
And Martin said he doesn't expect to see an increase in prices until the middle of the year, but that they could continue to go up as the year goes on.