Everett Griner talks about the cotton exports increasing in today’s Agri View.
Cotton growers didn’t have a lot of optimism when they started this year. Prices were low, markets were dull and exports were slack. It’s still a drab situation but one factor gives growers something to be optimistic to think about. China is expected to begin a strong import surge.
First, they’ve cut back their own production from 15 million acres in 2008 to 7 million acres this year. That translates into 15 million bales this year. They’re expected to use as much as 35 million bales, much of which comes from reserve stocks. But China’s normal use of cotton is enough to force them to import more.
Timing is a big question but those imports will make a big change in US exports. It’ll take a little time, but stronger exports definitely helps boost prices. 2017? Perhaps.
That’s Agri View for today. I’m Everett Griner