I
Cottonrecap
By Sally Andel
t has been a rough patch for cotton lately.
It is hard to sugarcoat the actions of the
recent cotton market sessions. The ag secretary decided not to delegate cottonseed
as an oil seed. This had virtually no impact
on the markets. They are actively working to
resolve this and will hopefully emerge with a
positive solution.
The National Cotton Council recently
released its initial estimate for the 2016 U.S.
planting intentions at 9.1 million acres. This
is up 6.2 percent from 2015. At this time, all
crops are having price difficulties. In some
cases, cotton is considered the “least bad”
crop to plant.
There are approximately 100 million bales of
cotton on stock in the world. China has more
than 50 million bales in reserves and more
than 10 million in free stock. China has a new
government and no longer wants large stocks
of cotton. It is working to reduce its reserve
and will have to sell at huge losses. According
to analysis, China has cut 2.4 million acres of
cotton and production will continue to fall
because they cannot grow cotton economically.
India has also lowered its cotton acreage.
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