This month’s WASDE Report offered little support to cotton growers who were already having a rough year. The Farm Bureau says the hits keep coming.
“There was an increase in estimated production numbers and a decline in exports and consumption, which caused ending stocks to increase by about nine percent. Basically, production has bounced back this year in cotton, largely due to better-growing conditions in Texas, but demand has fallen over last year. This has led to a nearly 15 percent decrease in price since last year,” said Betty Resnick.
Since the 2018 Farm Bill, cotton growers have seen their production costs go up by nearly 30 percent. Analysts say this year’s input costs likely will not provide much support.
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Stronger mill use is providing a boost for extra-long-staple cotton demand, though overall volumes remain limited.
Lower beef and pork inventories point to tighter supplies, while growing turkey stocks could add pressure heading into fall.
Farm Bureau economist Dr. Faith Parum says year-round E15, higher renewable fuel standards, and expanded trade could boost demand for American agricultural products.
The House also passed a stopgap spending bill to keep the government funded through Dec. 11.
