By admin       2018-07-25

There is “a really big increase” in overall cotton demand globally, and if projections for the new marketing year hold, it will be the most cotton that has ever been consumed worldwide, says Hank Reichle, executive vice president of the Staplcotn cooperative at Greenwood, Miss.“We’re finally climbing above the demand levels we had before the recession and $2 cotton,” he said at the joint annual meeting of the Mississippi Boll Weevil Management Corporation and the Mississippi Farm Bureau Federation Cotton Policy Committee. “Certainly, a highlight of this year is the fast rebound we’re seeing in cotton consumption.”Reichle, who had extensive experience in exports and marketing with Staplcotn before assuming his present role, says, “We’ve got good numbers this year in terms of supporting cotton price. Ending stocks are set to go down from 85 million at the beginning of the current marketing year to 77.8 million a year from now, July 31, 2019. This is happening because consumption is on the rise.Looking back over the last 19 years, the 5.5 percent year-over-year growth in consumption we saw in 2017 is really outstanding. We’re projected to grow at 3.9 percent in the current year, which is also outstanding when compared to the average in the five preceding years of just 1.5 percent.”World production in 2017 was good, he says, “but the good news is that there was really good demand for it. And this year, even though there will be more acres planted worldwide, the current expectation is that there will be 1.5 million fewer acres harvested. A lot of that has to do with the expected reduction in west Texas due to the severe drought situation there.

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