Economists predict steady rise in

cotton prices over coming decade

Published: Thursday, March 11, 2010
ALYSSA DIZON
Agriculture econoists loo!ing ahead at the ne"t decade #redict good
ne$s %or the South &lains' cotton #roducers, the local econoy and
your closets(
Darren )udson, director o% Te"as Tech's *otton +conoics ,esearch
Institute, #redicted a rise in cotton #rices and #roduction %or -oth the
.(S( and $orld cotton ar!ets(
/0ro the lo$ 10s to the id230s in si" onths is #retty good
reco4ery,/ he said( /5e're %orecasting at the end o% the 102year a4erage
around 32236 cents( So, you !no$, it's a #retty steady increase o4er
tie(/
As o% Tuesday, the National *otton *ouncil re#orted the latest $orld
ar!et cotton #rice $as 78(76 cents #er #ound( In the N**'s onthly
re#orts, the a4erage 9anuary #rice $as 77(68 cents: it $as 17(;0 cents
the sae tie last year(
The high current #rices are the result o% a decrease in .(S( cotton
su##ly and a rise in deand as countries eerge %ro the recession,
he said(
In the .SDA's 2003 Te"as u#land cotton #roduction statistics, Te"as
contri-uted to ore than a third o% the nation's 2003 o4erall
#roduction( The )igh &lains district 2 ore than 60 counties in the
&anhandle and 5est Te"as 2 #roduced a-out ;; #ercent o% the state's
cotton, $hich is turned into clothes, dia#ers and %a-rics(
This onth, )udson and %our e-ers o% his research institute
#u-lished their analysis, /<lo-al *otton =aseline> 2008?1022018?20(/
&ro@ections are -ased
on $eather #atterns and trade #olicies, aong other econoic %actors(
Siilarly, the .SDA last onth released its o$n 2018220 agricultural
re#ort that said cotton e"#orts, #rices and su##ly $ill gro$(
)o$e4er, 9ac!ie Sith o% the Te"as AgriLi%e ,esearch and +"tension
*enter said right no$, %arers are ainly concerned $ith the
Dece-er %utures #rices ANe$ Yor! *otton +"change's #ro@ected
Dece-er 2010 #ricesB, not long2ter #ro@ections(
THURSDAY AU!UST "# "$%&
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Lu--oc! A4alanche29ournal D201E( All ,ights ,eser4ed( Ters o% Ser4ice and &ri4acy &olicy
/=ased on current #rices and e"#ected le4els o% su##ly and deand, it
a##ears that %or the 2010 cotton cro#, South &lains %arers should
recei4e as uch as ;0 cents #er #ound %or their cotton,/ he said in an
e2ail(
,ichard Adas, a cotton %arer in Acu%%, said the high cotton #rices
and the unusually $et $eather ha4e -een 4ery encouraging(
/&rices are u# ore than they'4e -een in the last 20 years,/ he said(
/The #rice de%initely does hel# 2 it gi4es you ore incenti4e to gro$
cotton(/
According to the N**'s 0e-ruary 2010 *otton Mar!et ,e#ort, Te"as is
e"#ected to see an 3(6 #ercent increase in cotton acreage #lanted this
year(
5ith #re2#lant oisture and cotton #rices in their %a4or, Adas said
#roducers $ill not %eel as #ressured to cut -ac! on e"#enses(
Although Sith also %elt area %arers $ill li!ely #lant ore cotton this
year, he said they are only #lanning ho$ uch they $ill #lant %or the
2010 cro# and not %or #roduction a year or 10 years later(
To coent on this story>
alyssa(diFonGlu--oc!online(co l 7;;23781
charles(rein!enGlu--oc!online(co l 7;;2370;
A!R)-U/TURE0+conoists #redict steady rise in cotton #rices o4er
coing decade
0irst a##eared on lu--oc!online(co> E>E0 #(( 5ednesday(
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