USDA’s cotton outlook brings good news on both production and price fronts. The department raised its yield estimate last week, boosting production to 18.2 million bales.
That is a 25 percent increase from last season. Prices for the crop would still average 90 cents a pound, which would be the highest season average market price ever.
A USDA chief economist says that high prices reflect high demand.
According to Seth Meyer, “Consumption is simply stronger than pre-pandemic levels... and then maybe there’s some fashion or comfort issues, which are leading to increased consumption of cotton-based apparel.”
The end result, high prices for U.S. cotton growers.
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