Cotton Supply at 43.4 Mn Bales

Cotton Supply at 43.4 Mn Bales

The Cotton Association of India (CAI) has estimated that the cotton crop for this season ending in September 2014 to be 37.6 million bales (170 kg each).

The Cotton Association of India (CAI) has estimated that the cotton crop for this season ending in September 2014 to be 37.6 million bales (170 kg each). Dhiren Sheth, President of CAI, stated that one third of the crop for this season has arrived and the crop arrivals as of December 31, 2013 was 11.97 million bales (170 kg each), which is higher than the crop arrivals during December of 2012. The total cotton supply during this season will be 43.4 million bales as against 42.6 million bales during last year (2012-2013).

CAI noted that the total crop consumption by the organised mill sector to be 26 million bales (170 kg each). There is a significant increase in the production this year and is estimated to be 37.6 million bales. This is roughly 2 million bales higher than last years production.

Meanwhile, in a recent meeting at Plains Cotton Growers in Lubbock, TX, USA there was optimism for cotton planting this year. The decrease in corn acres this year will result in slight uptake in cotton planting nationwide, although corn will be predominantly replaced by soy beans.

Representatives from seed industry such as Monsanto felt that the demand for cotton seed this year is slightly higher than what it was during the same period last year. The main factor that drives the switching back to cotton is the price and the recent positive export numbers.

Steve Verett, Executive Vice-President of Lubbock, Texas based Plains Cotton Growers expressed that he is hoping for more favourable weather in the coming year that will result in more harvested acres in relation to planted acres, providing a positive impact on the High Plains cotton industry.

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