Even though fundamentals are in place for higher cotton crop prices, President of Calcot, Bob Norris is shy of predicting higher price as he does not want be on the wrong side for second consecutive year.
Last year was the year of records. US exported record 17.6 million bales, China recorded consumption of 46.5 million bales, world consumption was at record 117 million bales and the world production fell short by three million bales of total consumption.
Calcot was the largest marketer of Far West Cotton with sales of 800, 000 bales even though value was $100 million less because of low prices and volume.
This season, bale is expected to rise to one million as Calcot markets 30, 000 bales from South Texas producers who had invited Calcot to market cotton for them. Calcot had marketed 14, 000 bales of cotton last year.
United States Department of Agriculture (USDA) has predicted world production at 115 million bales while consumption is set to reach at 122 million bales. The export of US is set to fall to 16.2 million bales.
In states like California and Arizona, cotton is going through a lean patch with increasing energy prices and farmers shifting to corn and alfalfa and to add to this, boom in real estate is reducing the farmland.
Norris said that broadening marketing base will provide them access of world textile market expanding their customer base.
marketing@alchempro.com
