High quality of U.S. cotton continues to support demand and has helped push nearby futures prices close to 90 cents a pound.
It’s a different story for new crop prices as old crop futures prices don’t seem to be pulling them along.
That, plus an anticipated greater supply of cotton in 2014-15, is why cotton market analysts speaking at Ag Market Network’s February update say new crop cotton may offer the best prices at planting, as the market looks to attract cotton acres.
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John Robinson, Extension economist, cotton marketing at Texas A&M, Robinson said U.S. cotton acreage is not likely to shift far from the National Cotton Council’s recent survey of cotton producers, which indicated plantings for 2014 of 11.27 million acres.
Robinson says 11 million acres of cotton would likely produce a 16-million bale crop. With 3 million bales of carryover from 2013, domestic use in 2014-15 of about 3.5 million bales and exports of around 9 million bales, U.S. ending stocks would climb to about 6 million bales next year, pushing the stocks-to-use ration higher.