Jodi Campiche, vice president of economics at the National Cotton Council (NCC), said fertilizer prices and supply conditions may prompt increased cotton planting in most parts of the United States in 2022, while the crop’s decline in the western United States is due to water supplies and drought. There are still issues with scale.
Demand pent up by the pandemic has added to pressure to buy and pushed up prices. Rising world cotton demand in 2022, as well as the possibility of reduced production in western U.S. production areas, may attract stable fiber prices, especially for extra-long staple varieties.
According to the National Cotton Council, highland cotton prices are likely to remain at or close to $1. High overall commodity prices for corn, soybeans and cotton could challenge growers to choose one crop over another, but high fertilizer prices due to supply shortages could prompt farmers in some areas to choose cotton over corn, and water availability in the West could lead to Cotton acreage shrank in California and Arizona.
Campiche expects total U.S. cotton acreage to rise in 2022, although uncertainty over when transportation logistics will ease and U.S. growers will be able to more easily export cotton and other commodities continues to cast a shadow over all U.S. agriculture. The USDA predicts domestic cotton production in 2021 will reach 18.3 million bales, about 3.7 million bales higher than last year.
Inflationary pressures, especially in the United States where the rate is the highest in decades, could dampen demand. U.S. consumer spending on apparel and apparel has slowed because of inflation. Still, China appears to be a positive market for U.S. cotton, as Chinese demand still exceeds domestic supply. Affected by the Xinjiang cotton ban, China needs to import cotton from other places.
Brazil and Australia remain competitors for U.S. cotton, although Brazil clearly has problems moving cotton from production areas to ports. While previous trade tensions between the United States and China have made it easier for Brazil to sell to China, China still favors U.S. cotton.
Additionally, as brands and retailers demand sustainable cotton, textile mills may look to U.S. cotton farms to meet their needs in cultivation and production.
Jodi Campiche, vice president of economics at the National Cotton Council (NCC), said fertilizer prices and supply conditions may prompt increased cotton planting in most parts of the United States in 2022, while the crop’s decline in the western United States is due to water supplies and drought. There are still issues with scale. Demand pent up by the pandemic has added to pressure to buy and pushed up prices. Rising world cotton demand in 2022, as well as the possibility of reduced production in western U.S. production areas, may attract stable fiber prices, especially for extra-long staple varieties. According to the National Cotton Council, highland cotton prices are likely to remain at or close to $1. High overall commodity prices for corn, soybeans and cotton could challenge growers to choose one crop over another, but high fertilizer prices due to supply shortages could prompt farmers in some areas to choose cotton over corn, and water availability in the West could lead to Cotton acreage shrank in California and Arizona. Campiche expects total U.S. cotton acreage to rise in 2022, although uncertainty over when transportation logistics will ease and U.S. growers will be able to more easily export cotton and other commodities continues to cast a shadow over all U.S. agriculture. The USDA predicts domestic cotton production in 2021 will reach 18.3 million bales, about 3.7 million bales higher than last year. Inflationary pressures, especially in the United States where the rate is the highest in decades, could dampen demand. U.S. consumer spending on apparel and apparel has slowed because of inflation. Still, China appears to be a positive market for U.S. cotton, as Chinese demand still exceeds domestic supply. Affected by the Xinjiang cotton ban, China needs to import cotton from other places. Brazil and Australia remain competitors for U.S. cotton, although Brazil clearly has problems moving cotton from production areas to ports. While previous trade tensions between the United States and China have made it easier for Brazil to sell to China, China still favors U.S. cotton. Additionally, as brands and retailers demand sustainable cotton, textile mills may look to U.S. cotton farms to meet their needs in cultivation and production.
