Examining Cotton at Year’s End
January 4, 2021 We know how COVID-19 has impacted normal life and the economy. How have the cotton and textile sectors fared?
The year was supposed to end with a positive news that two vaccines have been approved for mass inoculation. But the new COVID-19 variant that has shown up recently in the United Kingdom is causing genuine concern. With two major holidays around the corner, how the developing situation impacts the global economy and the cotton-textiles sector will be carefully watched.
A reduction in the crop production estimate in the United States and interest in cotton products bring out optimism among stakeholders. “An increase in yarn prices in India has boosted confidence in the sector,” stated Velmurugan Shanmugam, general manager of Aruppukottai, India-based Jayalakshmi Textiles.
“Global demand looks much better than a few months ago,” observed Jon Devine, senior economist at Cotton Incorporated. “Recent surveys of textile manufacturers conducted by the ITMF have described continual improvement since April.”
A significant decrease in this year’s production in the High Plains of Texas – the world’s largest contiguous cotton patch – is helping with the rebound in prices. This area will produce about 2.3 to 2.5 million bales (480 lbs. each) in 2020, versus 2019’s production of 3.051 million bales. “The 2020 crop on the Texas High Plains has been severely impacted by dry conditions throughout the growing season,” said Shawn Wade, director of policy analysis and research at Plains Cotton Growers, Inc.
Harvest is almost complete, and 90% of ginning is completed in the High Plains area. “Yields are disappointing, but overall quality is good,” stated Mark Brown, field services director at Plains Cotton Growers.
Average micronaire has been lower in the High Plains compared to 2019 due to cold weather in September. “Overall quality is good with strength averaging at 30.5 g/tex and length little bit better than last year,” stated Danny Martinez, area director of USDA’s Lubbock Cotton Classing Office.
The ginning season was impacted by COVID-19, but ginners worked hard to carry on ginning to finish. The year is ending with optimism for the cotton and textile sectors with interest in cotton and a rebound in cotton and yarn prices. Again, the impact of the emerging Corona variant is yet to be known.
A safe New Year 2021!
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