While latest cotton numbers from U.S. Department of Agriculture (USDA) are a bit lower than the previous report, the 2019 crop year is still expected to be the largest in more than a decade. The 2019 production estimate was reduced by approximately 650,000 bales, to 21.86 million bales.
“If that number is realized this would be the highest level of production since the 2005 marketing year,” said Dr. Jody Campiche, Vice President of Economics and Policy Analysis for the National Cotton Council. “So, even with the lower level projected as compared to last month, we’re still going to have a lot of U.S. cotton.”
Expectations for U.S. mill use were also reduced by about 100,000 bales, as well as American cotton exports. USDA is projecting 16.5 million bales to be exported for the 2019 crop year. “Some of that’s due to lower U.S. production, some of it’s due to reduction in the U.S. share of the world cotton trade,” said Campiche.
Listen to the report below.