The question isn’t whether the cotton market is going down; the question is how far down it will go, says Kip Butts, senior cotton analyst and director of energy services with Memphis, Tenn.-based Informa Economics.
Farmers in China and India have planted more cotton than expected earlier in 2017, and those higher numbers are beginning to show up in the estimates, he says. At the same time, consumers in the U.S. haven’t increased their purchases of clothing to the level needed.
Speaking at the Southern Cotton Ginners Association summer meeting in Lafayette, La., Butts said it’s important for U.S. growers to sell as much of their crop as they can and be prepared for prices to drop into the 50s or low 60s – “unless there is a major problem with production somewhere.”
To watch more of Butts presentation, click on http://www.deltafarmpress.com/cotton/tax-change-india-more-bad-news-cotton-use or http://www.deltafarmpress.com/cotton/oil-prices-may-remain-range-three-four-years.