With harvest projections unclear, now is the time to buy remaining old crop at a discount
Old crop cottonseed prices remain low as harvest projections and weather conditions are unclear. The USDA-NASS August Crop Production Report projections show a smaller harvest for 2018, totaling 6.02 million tons in comparison to last year’s 6.42 million tons.
USDA projections reflected that 40 percent of the Texas crop has been abandoned due to drought, and the August 20 USDA crop progress report noted 22 percent of the remaining crop in the Texas is in good or excellent condition. Therefore, reported harvest numbers were higher than the market or economists expected.
“The Southwest has had a bad year with a lot of dryland abandonment. However, with the technology in newer cotton varieties, there’s always potential to be surprised by higher yields as these crops can still yield better in poorer conditions,” says Dr. John Robinson, professor and extension specialist/cottonseed marketing, Texas A&M. “Ultimately, the harvest total could swing within 500,000 tons from this month’s projections, and the September report historically can have a different outlook from August.”
As other commodities are experiencing uncertainty, including hay stocks being down significantly from last year, cottonseed may be the bright spot in the ration right now, according to Cotton Incorporated.
Getting the best cottonseed price
Those looking to take advantage of cottonseed prices can easily submit a request for a cottonseed price quote from a qualified list of cottonseed merchants at wholecottonseed.com.
Cotton Incorporated, funded by U.S. growers of upland cotton and importers of cotton and cotton textile products, is the research and marketing company representing upland cotton. The program is designed and operated to improve the demand for and profitability of cotton.