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Cotton Price Outlook

Carl G. Anderson


The U.S. cotton marketing industry faces another year of possible extreme price changes. Prices could move over a 30 cent per pound range from the mid-50 cent level to mid-80 cents during 1996. Despite U.S. growers intending to plant less cotton than last season, supply is likely to increase because of weak demand. Overseas, cotton production has recovered while consumption remains stagnant. As a result, world stocks will likely increase in the season ahead for the third year in a row. Therefore, the pressure on prices is mainly bearish. However, in early 1996, the cotton price needs to be reasonably favorable, relative to high grain and soybean prices, to assure that growers will plant sufficient cotton acreage to supply market requirements.

Reprinted from Proceedings of the 1996 Beltwide Cotton Conferences pp. 384 - 388
©National Cotton Council, Memphis TN

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Document last modified Sunday, Dec 6 1998