Cotton Prices Go Limit Up Following August USDA Reports
The roller coaster ride continues.
Hours after USDA released its recent production and world/supply demand reports on August 12, cotton prices jumped from their lowest point in years (61.20 cents/lb) to go limit up to 64.82 cents per pound.
The reports downgraded total U.S. acres for 2015 to 8.9 million and lowered the production forecast to 13.08 million bales – a drop of nearly 20 percent. Anticipated harvested acres also decreased, as did expected average yield.
Production estimates were also down for both China and India.