Cotton growers haven’t had much to write home about lately, but that could change depending on how strong the current El Nino weather phenomenon turns out to be.
Jarral Neeper, president of Calcot Ltd., Bakersfield, Calif., says cotton futures could reach the low 70s if a stronger El Nino reduces production to 96 to 98 million bales in 2016. Such a reduction could push world ending stocks below 90 million bales for the first time in years.
Don't expect this to happen quickly because it will take some time for the El Nino's impact to play out in the market. "This probably won't happen before late spring or early summer," Neeper says.
This video and the others that will follow was shot during Neeper's cotton market outlook presentation at the Cotton Economics and Marketing Conference during the Beltwide Cotton Conferences, which were held Tuesday-Thursday (Jan. 5-7) in New Orleans.
For more about the Beltwide, go to www.cotton.org.