Higher production world over and increasing demand is the state of the cotton industry.
On the day of inauguration of the 45th President of the United States, cotton industry people gathered in Lubbock, USA for the Plains Cotton Growers’ cotton meeting. The year 2016 has been phenomenal for cotton production in the High Plains of Texas and the production in this region is expected to be about 5.05 million bales. This will be the fourth largest cotton crop produced ever in the High Plains of Texas. Technology adaptation and efficient production practices by the producers are some of the reasons for such high production. Australia is also having a good crop, so far.
While the cotton production is high around the globe, interest in cotton is also high among manufacturers. Mills are buying, stated one merchant who attended the meeting.
To a room full of stakeholders, “the crop has been phenomenal,” stated Steve Verett, Executive Vice President of Plains Cotton Growers, Inc. No one would have anticipated such a crop in September, added Verett. While production has been climbing up, cost of production is on the increase, which is a concern among producers.
With regard to sales, there is interest among global buyers for U. S. cotton. There has been good export sales this week, commented one exporter. The trend seemed to be that, with high production, demand is also high. Given this scenario, it is expected that cotton will trade in 68 to 70 cents range this year.
By: Seshadri Ramkumar, Texas Tech University, USA