USDA’s Cotton Outlook is good for both production and price fronts
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.