Cotton Demand on Pace to Record High Level

An ag economist says global cotton demand could reach a record high this year, levels not seen since the great recession. CoBank’s Rob Fox recently told Brownfield News Network that the market is being amplified by supply chain disruptions.

“Spinners making thread and so on can’t get the cotton on time and therefore there’s not enough fabric and everybody is scrambling to get cotton supplies at the moment,” Fox said.  “And, the trend will likely continue. The demand is rip-roaring.  China is buying – they’re selling out of their strategic cotton stocks and they’re trying to refill those with U.S. cotton and other origins,” he said. Cotton prices have risen more than 50 percent in the last year.

EDITOR’S TAKE:

Excellent news for cotton growers and ginners. As we previously reported in the AIR, cotton production is up, and with improved pricing, it should contribute nicely to higher incomes for cotton producers. So, at the risk of sounding like a broken record, farmers with more money in their pockets are much more likely to purchase something they need for their operation, such as a new truck or two, versus giving it to Uncle Sam in the form of tax payments. As a very wise CAD member who also has the huge advantage of AgPack, we are certain that you can fulfill their requirements, even if they had to wait a little for delivery. But with this kind of momentum, it will likely carry into 2022 and beyond. Farmers are your best customer prospects as you “Look Beyond Your Lot!”