Home Farm Equipment COTTON SPIN: Cotton production outcome yields price uncertainty

COTTON SPIN: Cotton production outcome yields price uncertainty


The July WASDE report tightened up the U.S. cotton provide and demand image just a bit extra. Their changes to the 2021 U.S. crop included some offsetting changes to production. First, they up to date the planted acreage quantity, utilizing the 11.72 million planted acres end result from the June 30 Acreage report. 

Then USDA made a moderately giant adjustment, dropping their beforehand assumed 20% abandonment forecast to an traditionally low 10% U.S. abandonment. They presumably did this due to all of the moisture in Texas and elsewhere. However they’re making a notable assumption that the moisture and related cooler temperatures will probably be a web profit.  The price of that cooler climate is delayed crop growth within the Plains and crop maturity in South Texas. So, there may be an underlying assumption that the crop will get sufficient warmth items and idyllic maturation climate through the maturity interval. 

The final notable adjustment was that USDA lowered anticipated common U.S. cotton yield by 33 kilos per acre. That may be a huge downshift month-over-month. It assumes that the decrease abandonment means a variety of low-yielding Texas dryland will get harvested, knocking down the U.S. yield common. The flip aspect of that assumption is if West Texas will get a mixture of warmth items and well timed moisture going ahead, plus that idyllic September/October, then yields could be increased than anticipated.    

Desk 1.  U.S. All Cotton Provide/Demand Steadiness Sheets, by Advertising 12 months. 

 I submit that there’s room for price volatility in each instructions as the present stability sheet will get up to date.  The three-something million bale ending shares outcome that is at present projected ought to assist futures within the present 80 cent vary. Going ahead, any surprises within the type of decrease production from insufficient warmth items, flooding, tropical storm injury, insufficient maturation, an early freeze or messy harvest season may push costs into the 90s. Alternatively, a couple of million further bales from  progress, maturation, and harvest circumstances may stress costs a bit within the early fall. 

For extra ideas on these and different cotton advertising and marketing subjects, please go to my weekly on-line publication at http://agrilife.org/cottonmarketing/.  



Source link

Most Popular

Hemp transplanters: an agricultural technology breakthrough

Hemp has the potential to revolutionize many industries. With so many uses and benefits—from textiles, furniture, paper, clothes, biodegradable plastics, paint, insulation, biofuel, and...

Vegetable transplanters: an in-depth explanation of these automatic planter machines

Transplanters aren’t exactly a new agricultural technology. The first transplanter was a rice transplanter invented in 1898 by Heigoro Kawano. Transplanters for rice, vegetables,...

What’s new in tomato farming technology?

Tomatoes are one of the most economically significant crops in the world. It’s estimated that 188M tomatoes were produced worldwide in 2018. Tomato growers, on...