NCC says cotton industry to face difficult economic climate
17 Feb '09
4 min read
Regarding U.S. cotton supply estimates, Adams said the NCC's planting intentions of 8.1 million U.S. cotton acres portends a 12.8 million bale crop – 12.4 million bales upland and 372,000 of extra long staple. This is about 250,000 total bales less than 2008. Even with smaller disappearance in 2009, combined mill use and exports will exceed the anticipated crop, further reducing U.S. stocks to 5.2 million bales.
“U.S. cotton's economic situation will continue to be heavily influenced by developments in the world market,” Adams said. “ A reduction in U.S. stocks may have little bearing on prices if world stocks remain high.”
One significant cause for optimism, Adams says, is that due largely to lower oil prices, costs of purchased crop inputs could range from $50 to $100 per acre lower than in 2008, depending on specific production practices.