What is in this article?:
- Cotton price hangover lingers
- Pima demand
- World textile mills continue to struggle from past high cotton prices.
- Cotton carryovers at record levels.
- Glimmer of hope from drought impacts.
Fortunately, there has been a slight pickup in Pima demand. “It is not robust, but U.S. Pima is selling every week,” McDermott says. A recent 2 cents per pound increase in price quote for the landed price of Pima was the first increase since a year ago, reports McDermott.
“Over the last month or so, Egyptian prices have risen sharply to where they are about 22 cents over the Pima price,” he says.
McDermott believes that many of those Pima bales in the carryover will be sold by harvest time this fall.
Cotton right now is less attractive for 2013 than other crops like corn and cereal grains. However, growers are coming off a good yielding year and cottonseed prices are still strong. That may spare cotton from another dramatic acreage drop in the state. McDermott likes to remind California growers that often the best time to plant cotton is “when no one else is.”