Strong Forecast for Cotton
Strong demand for cotton is expected to continue through 2022.
US cotton growers saw a big surge in market prices in 2021 thanks to strong demand in both domestic and export markets.
USDA Chief Economist Seth Meyer:
Meyer: “We went through a year of pretty good demand and tiger exportable supplies, good production this year but demand which has been pretty solid globally. A 2.5% growth in cotton demand globally, which to put in context is a pretty strong rebound in demand.”
Meyer says the USDA is forecasting cotton prices for 2022 at close to $.90 per pound. He calls that an amazing price for a season average. He says some analysts are even going further, talking about cotton prices rising to $1.00 per pound. Those kinds of numbers are obviously very positive from a producer’s standpoint and could mean a bright year ahead.
Meyer does have a warning about the renewed activity around the COVID due to possible new variants. He says that could hurt demand.
The Georgia Cotton Commission (GCC) is hosting its annual meeting on Jan. 26th at the University of Georgia Tifton Campus Conference Center.
Speakers include the senior vice-president of Consumer Marketing for Cotton Incorporated. Kim Kitchings’ will speak about what Cotton Incorporated is doing to position cotton globally as the No. 1 fiber in the world.”
Kent Fountain, who’s chairman of the National Cotton Council will also speak during the meeting, Fountain is a ginner and grower from Surrency, Georgia.
The 2022 National Cotton Council Annual Meeting will be held in February in Houston, Texas.