The Department of Agriculture recently released the first production estimate for the 2019 U.S. cotton crop, with expectations of reaching levels that have not been seen in more than a decade. “USDA has projected 2019 U.S. exports of 17 million bales,” said Dr. Jody Campiche, Vice President of Economics and Policy Analysis for the National Cotton Council. “Which would be the highest level since the 2007 crop year.”
However, the high level of expectations will also be heavily influenced by the trade relationship between China and the United States. “If the U.S.-China trade dispute continues to escalate, it may be difficult to export 17 million bales without increased exports to China,” Campiche noted. “A larger world crop, along with the ongoing U.S.-China trade disruptions could put additional pressure on prices for the 2019 crop year.”
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