Approaching the 2007 planting season, grain and soybean prices are trading 30 to 50 percent above year-ago levels. According to Dr. Gary Adams, Vice-President of Economics and Policy Analysis for the National Cotton Council, shifts from cotton to other commodities is anticipated for 2007.
Looking at the global cotton market, Adams says China continues to be a dominant player as the world’s largest producer, processor and importer.
As mill use has declined, export channels have become the primary outlet for U.S. cotton. However, relying on international markets brings its own set of challenges.
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