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Global cotton crop situation better than last year
Aug '12
The United States Department of Agriculture (USDA) recently released its August estimate of world’s cotton supply and demand.

In general, estimates have been raised from the July level and world cotton production is estimated to be 114.11 million bales (480 pounds each), which is up from the July estimate of 113.81 million bales.

As per the August estimate, United States is estimated to produce 17.65 million bales, which is up from 17 million bales estimated in July.

The high plains of Texas, the home to the world’s most concentrated cotton production will have 4.1 to 4.2 millions of acres cotton planted this year.

Speaking at the Plains Cotton Growers, Inc. (PCG) meeting, Shawn Wade, Director of Policy Analysis and Research for PCG, said that abandonment of cotton acres planted this year is currently below the normal range of 18-20%, but that recent weather and ongoing drought conditions are expected to eventually lead to additional acreage abandonment before harvest.

“He also noted that the percentage of 2012 dry land and irrigated crop acres in the high plains is expected to mirror the region's historical averages of 45% and 55%, respectively. Cotton experts present today at the meeting reinforced the wide range of cotton conditions that can be found across the high plains.

“While we expect to harvest a crop that is better than last year overall, it is important to recognize that we still have many areas  that are in essentially the same situation as they were in 2011," stated Steve Verett, Executive Vice President of Lubbock-USA based Plains Cotton Growers, Inc.   

Verett further stated “If price ratios between cotton and other crops stay at current ratios there will likely be less cotton planted in high plains in 2013.”

Dr Seshadri Ramkumar

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