An ag economist says current fundamentals point to lower cotton prices in 2021.
Dr. Jody Campiche, vice president of economics and policy analysis, with the National Cotton Council made her remarks during this week’s Beltwide Cotton Conference. “We looked at that chart with stocks to use ratio and US farm prices, and I think we could see a lower price in 2021,” she says. “But again, it just kind of depends on how far we go into the 2021 crop year with the current pace of recovery or any new government stimulus into the markets.”
She says China will likely be a factor in the bottom line for cotton producers. “I would expect at least the same level of demand as we’re seeing right now,” she says. “Because the Phase 1 trade agreement cover 2020 and 2021, I wouldn’t expect that to change.”