Home / Knowledge / News / Textiles / Go-betweens feeling pinch of rising cotton prices
Go-betweens feeling pinch of rising cotton prices
27
Oct '10
The ever rising prices of cotton are hurting a very important section of the cotton trade in the US. The go-betweens or middle-men, who buy cotton from the farmers and sell it to the textile mills, have been forced to fork out additional capital.

These traders typically hedge the price of the cotton bales they own by locking in sales on the futures market. As futures prices increase, the exchange demands more margin money. The margin money is held by the exchange as collateral against a futures position.

This has meant that the US based traders have been forced to shell out an astronomical US $5 billion since the just last 3-4 months, considering that cotton futures have flared up sky-high and touched 15-year historic highs in the period.

Fibre2fashion News Desk - India

Must ReadView All

President Donald Trump; Courtesy: White House

Textiles | On 23rd Jan 2017

US textile industry eager to work with President Trump

The US textile industry is eager to work with President Donald Trump...

Textiles | On 23rd Jan 2017

LyondellBasel expands Texas plant ethylene capacity

US based producer of petrochemicals and speciality chemicals...

Textiles | On 23rd Jan 2017

China’s cotton imports down 39% in 2016

China’s total cotton imports declined by 39.1 per cent to ...tons in...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search