Hard times continue in the cotton market.
It dropped from 93 cents to 78 cents a pound and they are saying now that the Texas crop is now rated 49% poor or very poor, Oklahoma 55% poor. Elsewhere there’s only just a few exceptions. The crop is at least 50% good to excellent.
Beltwide the crop is 36% good to excellent. Compared to the first projections this last month for 26 they’re saying that the yields are reduced across eight states on cotton production including Arkansas, Mississippi, Tennessee, Texas, and Virginia. They’re saying exports for the 26th crop year have gotten off to guess what could be called a weak start.
It says it’s earlier in the market right now but there is not any movement. World demand for the 26th crop is projected at 122 million bales as compared to 121 last year and 119 the year before. So, demand is increasing but apparently not at a rapid enough rate to impact the market.
So, we’ll have to wait a while to see if it’ll bounce back dropping down to 78 to 80 cents. There is a PLC payment being can being discussed and allocations will be coming out on our extra base acres.
Audio Reporting by Tyron Spearman for Southeast AgNet.