Market signaling more cotton acres in ‘22
The head of the National Cotton Council says they’re expecting cotton acres to rise in 2022.
Gary Adams tells Brownfield prices are at the highest level they’ve been since 2011. “December futures are trading in the low 90s and that’s really the price that our producers look at when they’re making their 2022, acreage decisions,” he says. “And they’ll not only look at cotton prices, but they’ll look at prices of competing crops as well.”
He says input prices are also on their way up. “Fertilizer prices chemical prices for up as well,” he says. “So producers don’t just look at relative market prices they have to take into consideration net returns.”
But, he says, like any other industry, logistics are going to be a challenge for farmers this year. “Supply chain, market disruptions, getting our cotton to market continues to be problematic,” he says. “And continues to be slower than we would like it to be.”
And to avoid as many disruptions as possible, Adams says producers have been securing inputs and getting them locked in earlier than usual.
Brownfield interviewed Adams following the recent Beltwide Cotton Conference in San Antonio, Texas.
AUDIO: Gary Adams, National Cotton Council