Cotton planting is underway across the nation, and optimism varies depending on the region.
A producer in west Tennessee told Farm Progress price-wise things look tough, but as far as acreage goes, farmers are excited and hoping for another year like 2023 and plan to increase planting sustainability.
A farmer in Georgia is not exactly excited but agrees cotton will be the best opportunity to expand acreage.
In Texas, winter moisture and the market being up is creating optimism for growers.
Cotton activity on the USDA’s latest World Supply and Demand Report was quiet, but the World Ag Outlook Board Chair does have one noteworthy world impact.
According to Mark Jekanowski, “The effect of China on the global SMB this month, we raised China’s cotton consumption forecast by 500,000 bales. That was more than offset by reductions in consumption by other countries, but still, China remains a major destination for global cotton supplies. Much of that cotton is going into their own stocks. China’s ending stocks, we raised this month by 800,000 bales. So basically, what they’re doing is replenishing their state reserves of cotton.”
The domestic cotton balance sheet this month also showed no activity, except for a 1 cent reduction in the season-ending average price to 76 cents per pound.
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