Strong foreign demand, higher input costs for farmers and prolonged drought in Texas is leading to surge in cotton plantings by the US. This surge was a result of cotton futures in New York touching a decade high of 44 per cent during January-end over the last year. The growth on stock exchange was driven by projections for a second global deficit.
In this season beginning August 1, cotton planting by US farmers are projected to rise by 7.3 per cent to 12 million acre from the previous year, according to the National Cotton Council’s planting-intentions survey released Sunday.
Increase in cotton planting is also being driven by tighter cotton supplies and high demand for textiles in the global markets including China, India and Mexico. Global cotton consumption is also projected to surge by 2.8 per cent this year, as shown by data from the United States Department of Agriculture (USDA).
