Cotton growers may be partying like it’s 1995, following USDA’s June 10 supply-demand report, said Scott Stiles, Extension economist-risk management for the University of Arkansas Division of Agriculture.
“Cotton inventories have really tightened up and we are finally back at levels we last saw in the mid-90s,” Stiles said. “I recall 1994 was a phenomenal year price and yield-wise. Cotton has turned the corner finally and arrived at the dance.”
The report added support to both July and December cotton futures.
Exports from the 2009 crop were increased 250,000 bales and 2009 ending stocks are now projected to be 2.9 million bales. The 2010 ending stocks are now projected to be 2.8 million bales, down from 3 million last month.
“U.S. ending stocks haven’t been below 3 million since 1995 — 15 years ago!” Stiles said. “The season average farm price for cotton that year was 76.5 with a 2.6 million-bale carryover.”
The producer price range for 2010 was left unchanged at 60 to 74 cents.