U.S. cotton planted area expected to decrease by 12% in 2020
Jan 16, 2020 ｜ by CT
According to a survey conducted by the Cotton Magazine in the United States in November-December, the area of cotton planted in the United States in 2020 is 12.082 million acres, which is 12% lower than the actual planting area of 13.72 million acres in 2019, which is lower than previous market expectations.
According to the survey, the intentional area of the southeast United States is 2.5 million acres, a decrease of 12.2% year-on-year, the central-south region of 2.04 million acres, a decrease of 10.5% year-on-year, the southwest region of 7.09 million acres, a decrease of 12.1%, and the western region of 14.3%. Although the U.S. cotton area is expected to decrease year-on-year, 12 million acres is a strong indicator that U.S. cotton is still viable in the face of changing market conditions and challenges. The survey showed that, although global trade disputes disrupted originally reasonable supply and demand fundamentals, cotton still prevailed over other crops. For many, cotton may still be the best choice for most growers in the United States. It is understood that the yield and quality of cotton in many regions of the United States in 2019 are very good, but the low cotton prices still affect the enthusiasm for planting in 2020. Respondents said that in order to stabilize the US cotton area, cotton prices must rise. The first factor affecting U.S. cotton planting intentions is price, then the input of production costs (cotton picking equipment) and its impact on downstream markets. Many interviewees said that the final decision will be made based on the market direction in winter.
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