USDA raises cotton crop guess, lowers rice stocks
The USDA increased its cotton production and ending stocks estimates.
This year’s crop is now seen at 16.5 million bales, up 1 million from May, on a higher harvested area guess, now at 9.41 million acres, 700,000 higher, which canceled out a lower yield projection of 841 pounds per acre, down 13.
That increase in production mostly canceled out a lower old crop ending stocks figure and pushed the new crop ending stocks guess to 3.5 million bales, 200,000 more than a month ago. The average 2022/23 farm price for upland cotton is estimated at $.82 per pound, with 2023/24 at $.77.
For rice, old crop ending stocks came out at 26.6 million hundredweight, 1 million below last month on a bigger export projection, which also pulled the new crop stocks figure a million hundredweight lower, to 30.3 million. The average farm price is estimated at $19.40 per hundredweight, with 2023/24 at $17.60.
The new marketing year for cotton and rice starts August 1st.
The USDA’s next set of supply and demand estimates is out July 12th.