Well, what about cotton today? How is cotton doing in the southeast and the southwest? The drought conditions have likely diminished short term, but the longer term threat is not likely over as far as rain across the southeast.
The Texas Panhandle, a major cotton producing area, is very dry and is not impacting the market right yet. Drought and the lack of rainfall has caused crop conditions and production concerns right now. USDA’s acreage report will be released June 30th, and everyone’s watching.
The meeting between Trump and Xi in China summit and the Iranian war could have an impact on the number of acres planted to cotton. The exports right now, the demand is still uncertain. We need to average a good 288,000 bales per week for the remainder of the marketing year to meet the expectations of USDA.
Also, cotton prices have gone roughly up 7.14 cents a pound. That’s almost 19 percent of the price this year. But wait, it sounded 80 to 81 cents a pound, and now it’s 83 to 85.
And the farmer says, I may plant some cotton now that the prices are profitable.
Audio Reporting by Tyron Spearman for Southeast AgNet.