It seems like our customers just put away the equipment they used to harvest their 2016 cotton crop. The time passed quickly and now it’s time to start thinking about what the 2017 cotton crop will bring.
Based on Futures
Based on the futures market, West Texas farmers anticipate a good year. In December, the futures for the 2017 crop climbed to 70 cents per pound of cotton, much better than what they were the year before. Things have leveled off a little in the past few months, but the numbers still indicate that this year’s cotton crop will earn a higher return on your investment than corn.
More Cotton in the Fields
Local cotton farmers can anticipate seeing more cotton going to market this year. It’s expected that there will be a 9.5% increase in the amount of cotton acreage in Texas. Throughout the United States, it’s expected that 8.8%, approximately 10.8 million acres, of additional cotton will be planted. Barring a natural disaster, this means an additional 898 thousand cotton bales.
One of the reasons for the increased demand for domestically grown cotton is the renewed interest in athletic wear crafted out of natural fibers.
Demand for Cotton Climbs
Don’t worry that the increase in cotton production means a lower price per bale. If the current trend holds, you’ll be just fine. The domestic textile industry reports that they’re interested in purchasing 100 thousand extra bales of cotton this year, for a total of approximately 3.4 million bales sold domestically. This doesn’t seem like much when you consider that United States cotton farmers are planning on shipping 15.8 million bales of cotton this year.
The Export Industry
The one dark spot in the 2017 outlook for cotton is the export industry. Most of the cotton West Texas farmers produce goes to overseas buyers. The same will be true this year, but it doesn’t look like the big exporters will be purchasing as much as they did last year. However, it does look as if the export demand should remain high enough to absorb the increased cotton bales and still allow farmers to get a reasonable price per bale this year.
Don’t forget that Hurst Farm Supply has everything you need to manage this year’s cotton crop. From cotton planting to cotton harvesting, we have you covered. Not only will we deliver any brand-new cotton strippers or other equipment you need right to your farm, we also have service packages designed to keep your cotton strippers in tip-top shape.