Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Urban Outfitters, Inc.    URBN

URBAN OUTFITTERS, INC.

(URBN)
  Report  
Delayed Quote. Delayed Nasdaq - 07/19 04:00:00 pm
22.77 USD   +0.13%
06/14Cotton Prices Near 3-Year Low With No Sign of Turnaround
DJ
05/21URBAN OUTFITTERS : Reports Q1 Results
PU
05/21URBAN OUTFITTERS : URBN Launches Nuuly
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Cotton Prices Near 3-Year Low With No Sign of Turnaround

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/14/2019 | 10:52am EDT

By Kirk Maltais

U.S.-China trade tensions have shaken all agriculture commodities markets, but perhaps none more than cotton.

Cotton futures on the Intercontinental Exchange have fallen 26% since the U.S. and China instituted competing tariffs on each other's exports starting last July. Cotton losses this year trail only natural gas, orange juice and live cattle among commodities.

The U.S. exports most of the cotton it grows, and China, although the second-largest producer after India, is the world's largest importer of the fiber.

Traders say the U.S.-China back-and-forth has been the primary issue weighing down prices. "[Cotton futures] have interestingly avoided being moved by any other subject," said Bailey Thomen, a risk management associate with INTL FCStone.

In the run-up to a particularly tense round of negotiations in late April into May, cotton futures dropped 17% to a three-year low close of 65.45 cents a pound May 13. Since then, the price has moved little, trading above 66 cents a pound Friday.

This isn't the first time China has prompted swings in the U.S. cotton market. In 2011, China was buying large amounts of cotton, which pushed futures as high as $2 a pound. But when China figured it had enough of the fiber in storage, it stopped buying and prices slid to below 60 cents a pound by June 2012.

U.S. cotton exports to China fell 50% through April to 149,478 metric tons, according to data from the U.S. International Trade Commission.

Soft commodities traders expect cotton prices to stay around 65 cents a pound or even sink through the remainder of the year. According to Tyler Herrmann, a market strategist with RJO Futures, cotton futures on the ICE could slide as far as 55 cents a pound, which would be the lowest level since late 2010.

The low prices could discourage U.S. farmers from planting the crop. According to the Department of Agricultural and Resource Economics at NC State University, the break-even cotton price for farmers ranges from 65 cents to 70 cents a pound.

Gary Adams, president and CEO of the National Cotton Council, said the break-even price is even higher than that, closer to 75 to 80 cents a pound.

"That's much more in line with the cost of production," Mr. Adams said.

The lower cotton prices could benefit U.S. clothing retailers. However, those with manufacturing operations in China are looking for other options as the trade dispute persists, introducing uncertainty into their supply chains.

"We have been working on strategies to reduce our overall exposure into the China market," said Francis Conforti, finance chief for Urban Outfitters

Urban Outfitters said it sources roughly 25% of its goods from China and hopes to reduce this to 20%. J.C. Penney Co. Inc. (JCP), Kohl's and other retailers are trying to shrink their Chinese exposure, which includes apparel made from cotton.

Write to Kirk Maltais at kirk.maltais@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
CRB COMMODITY INDEX 0.10% 195.01 End-of-day quote.0.00%
FEEDER CATTLE?FUTURES (GF) - CMG (ELECTRONIC)/C1 0.20% 139.7 End-of-day quote.-6.33%
INTERCONTINENTAL EXCHANGE INC -0.84% 90.77 Delayed Quote.20.50%
INTL FCSTONE INC -0.46% 38.95 Delayed Quote.6.48%
J C PENNEY COMPANY INC -16.97% 0.8967 Delayed Quote.3.85%
LIVE CATTLE (LE) - CMG (ELECTRONIC)/C1 0.07% 107.475 End-of-day quote.-13.94%
NEW YORK COTTON -1.79% 60.78 End-of-day quote.-15.93%
ORANGE -0.26% 13.225 Real-time Quote.-6.57%
URBAN OUTFITTERS, INC. 0.13% 22.77 Delayed Quote.-31.51%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on URBAN OUTFITTERS, INC.
06/26URBAN OUTFITTERS : CBDfx Face Masks Launching Urban Outfitters Stores
AQ
06/14Cotton Prices Near 3-Year Low With No Sign of Turnaround
DJ
06/10URBAN OUTFITTERS : Management's Discussion and Analysis of Financial Condition a..
AQ
06/06URBAN OUTFITTERS INC : Submission of Matters to a Vote of Security Holders, Othe..
AQ
05/22URBAN OUTFITTERS INC : Other Events, Financial Statements and Exhibits (form 8-K..
AQ
05/21URBAN OUTFITTERS : Reports Q1 Results
PU
05/21URBAN OUTFITTERS : URBN Launches Nuuly
PU
05/21URBAN OUTFITTERS : Fiscal 1Q Earnings Snapshot
AQ
05/21URBAN OUTFITTERS : URBN Reports Record Q1 Sales
AQ
05/21URBAN OUTFITTERS : URBN Launches Nuuly, a Subscription Rental Service for Women'..
AQ
More news
Financials (USD)
Sales 2020 4 015 M
EBIT 2020 328 M
Net income 2020 250 M
Finance 2020 700 M
Yield 2020 -
P/E ratio 2020 9,40x
P/E ratio 2021 8,40x
EV / Sales2020 0,38x
EV / Sales2021 0,34x
Capitalization 2 231 M
Chart URBAN OUTFITTERS, INC.
Duration : Period :
Urban Outfitters, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends URBAN OUTFITTERS, INC.
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 31,69  $
Last Close Price 22,77  $
Spread / Highest target 84,5%
Spread / Average Target 39,2%
Spread / Lowest Target 9,79%
EPS Revisions
Managers
NameTitle
Richard Allan Hayne Chairman & Chief Executive Officer
Andrew Carnie President Home Garden & Intl Anthropologie Group
Calvin B. Hollinger Chief Operating & Administrative Officer
Francis John Conforti Chief Financial Officer
Joel S. Lawson Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
URBAN OUTFITTERS, INC.-31.51%0
INDITEX - INDUSTRIA DE DISEÑO TEXTIL22.95%95 949
KERING26.99%73 176
FAST RETAILING CO LTD26.51%65 031
ROSS STORES28.65%39 037
HENNES & MAURITZ33.85%29 483