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Cotton Industry Begins Year with Optimism

Higher cotton production globally and increased demand is the state of the cotton industry.

On the day of President Donald Trump’s inauguration, members of the cotton industry gathered in Lubbock, TX, for the Plains Cotton Growers’ cotton meeting.

2016 has been phenomenal for cotton production in the High Plains of Texas, with production for the region expected to be about 5.05 million bales. This will be the fourth largest cotton crop produced ever in the High Plains of Texas, thanks to technology adaptation and efficient production practices by growers.

Australia is also having a good crop, so far.

Speaking to a room of stakeholders, Steve Verett, executive vice president of Plains Cotton Growers, said the crop “has been phenomenal.” No one would have anticipated such a crop in September, he added.

While production has been climbing, the cost of that production is also increasing – a continuing concern among producers.

While cotton production is high around the globe, interest in U.S. cotton is also high among global buyers and manufacturers. Mills are buying, and export sales have been good, commented one exporter at the meeting.

The trend seemed to be that with high production, demand is also high. Given this scenario, it is expected that cotton will trade in the 68 to 70 cents range this year.

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