Shipping and supply chain issues have had a huge impact on cotton

It will take a while for infrastructure projects, including port upgrades, to become a reality. In the meantime, the shipping crisis continues to have an impact on U.S. ag commodities.

USDA increased “mill use” for cotton on the latest supply and demand report, but imports into China were reduced by 500,000 bales. This comes as global production is down, and input prices are skyrocketing with the supply chain weighing on availability.

Those struggles further impact cotton growers.

According to Dr. Jody Campiche with the National Cotton Council, “Continued issues with shipping logistics have resulted in a lower U.S. export estimate for 2021 of 15 million bales. However, given the current pace of shipments, it will be very difficult to reach 15 million bales by the end of the marketing year.”

However, futures prices remain strong, as logistic issues prevent the supply from meeting demand.


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