Dr. Don Shurley points out that cotton prices have weathered any negative market factors pretty well, staying within a range of mostly 79 to 84 cents over the past five months.
USDA’s May supply and demand report takes some of the bearish tone out of the market. Yet, oversupply and continuing economic factors will continue to limit any price advance.
USDA’s May 2023 WASDE report predicts higher production from fewer acres in 2023/24 for the U.S. cotton market, as 2022/23 production and ending stocks are reduced. Global forecasts for 2023/24 show lower production and rebounds in consumption and world trade.