Cotton market falls in 2022, outlook more optimistic
An ag economist says the cotton market took a hit in 2022, but the long-term outlook is more promising.
Rob Fox, Director of CoBank Knowledge Exchange tells Brownfield cotton demand is falling as more countries face economic downturn.
“Of all the ag commodities, cotton is most sensitive to income levels across the world because clothing, draperies and so forth are very discretionary.”
He says global textile companies have cut back orders, driving the price down, but he expects smaller plantings and contraction of the forecasted global supply next year.
“So, I would not be surprised in the least bit if by early 2023 we have cotton above $1.00.”
Fox says prior to the invasion of Ukraine global cotton consumption was at its strongest level in quite some time, so he is optimistic for cotton demand long term.
“We just need to get through this economic downturn in 2023 and get back on the upswing as far as global cotton consumption goes.”
He says drought in southeastern states like Texas also impacted US cotton production this year.