By  on December 18, 2012

After one of the most volatile years in fiber prices in 2011, stability returned to the market in 2012 and the outlook seems steady for 2013, but not without some concerns.

Cotton prices are at 68.4 cents a pound today compared with 86.4 cents a year ago, after exceeding $2 a pound in the spring of 2011 following a perfect storm of renewed demand. The recession eased and emerging markets increased usage just as natural disasters such as droughts in Texas and floods in Bangladesh and Pakistan lowered crop yields. This coincided with farmers opting for higher-profit crops to bring supply levels even lower.

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