Production outlook optimistic for Texas cotton amid low prices

Texas Crop and Weather Report By Adam Russell AgriLife

Production expectations are good for Texas cotton, but low prices may stymie positive outcomes for growers. John Robinson, Ph.D., Texas A&M AgriLife Extension Service economist in the Texas A&M Department of Agricultural Economics, said growing conditions are much better than in recent years due to drought, but prices are low and could decline further.

In 2022, Texas cotton growers experienced widespread crop losses, Robinson said. Two out of three acres planted with cotton were abandoned due to unrelenting drought.

Subsequent years produced below-average results for growers, he said. In 2023 and 2024, winter and springtime rains provided decent planting conditions before arid weather set in. High temperatures and little to no rain led to lower yields in dryland and irrigated fields, while late-season rains delayed harvests in some areas and hurt lint quality.

“Most cotton growers across Texas have taken a punch in the gut the last few years and are looking for that season to make up for it,” he said. “Conditions around the state should provide that kind of optimism, but unfortunately, the other important profit factor – prices – are pretty weak.”

Cotton prices slide

A June 30 report by the U.S. Department of Agriculture estimated national cotton acreage would be 10.1 million acres, down 10% compared to last year. Cotton acres in Texas, the nation’s leading producer, were expected to be down over 4% — 5.7 million acres compared to 5.95 million acres in 2024.

Robinson said low prices, coupled with wet weather and delayed plantings in the Mississippi Delta region, likely factored into the decline. The lower acre estimates did not result in a price boost at market.

Before the report was released, there were some expectations that cotton plantings could be closer to 9 million acres.

Cotton prices have taken a long slide from 80-85 cents per pound since March 2024 and settled below 70 cents per pound since May. December futures were trading at 67.8 cents per pound on July 7.

Robinson said the acreage estimate, coupled with higher-thanexpected ending stockpiles of cotton and speculative commodity selling, continue to factor into a weaker market.

“Nothing bullish about the cotton market has changed the speculative short position of those traders who expect the price to go lower still,” he said. “People were expecting the planted acres to drop further than they did, which would have made the ending stocks outcome a lot tighter, which is fundamentally supportive of better prices. But the reverse happened.”

Production potential is there

Robinson said growers are hoping above-average yields can compensate for lower prices.

Crop productivity will be highly weather-dependent from now until harvesting begins. Some cotton acres have received too much moisture in recent weeks and need sun and warmer temperatures to accumulate heat units and progress. Texas dryland cotton acres and most irrigated acres in the northern half of the state will need timely rains in July and August.

Harvests in South Texas typically begin in August, with the Texas High Plains maturing into November and harvests lasting into January.

“It’s good that we have moisture, but there is a lot of uncertainty,” he said. “The potential for good production is there; now we just need some conditions to align.”

AgriLife Extension district reporters compiled the following summaries: Rolling Plains

Pastures and fields continued to look excellent. Intermittent rains were very beneficial for the young cotton crop. The only negative effect of the rains was an increase in weed pressure above normal levels. Control measures have been difficult due to the wet conditions. Hay and sorghum crops continued to progress positively, and livestock were in great shape as the summer heat approached.

South Plains

Widespread, slow and steady rain fell for about four days across most of the district. Amounts varied from 1.5-6 inches. Rain continued over the long holiday weekend. The rainfall should help all crops. Subsoil and topsoil moisture levels were high compared to previous years. Cotton stages ranged from the three-leaf stage to squaring. Weed control continued to be a challenge due to the moisture. Producers were trying to apply fertilizer. Pastures were in good to excellent condition. Livestock were in good condition.

Panhandle

Overall soil moisture reported from adequate to surplus. Some coun-ties reported wheat harvest was complete. Overall crop conditions were fair to good. Considerable acres of late-planted corn and sorghum were no-till seeded into remaining small grain forage. Recent rainfall provided suitable soil moisture conditions for warm-season grasses. Planted cotton was off to a good start, making notable progress in growth and development. Improved conditions of range and improved pastures resulted in more and higher-quality forage available to grazing livestock. Pasture and range conditions were fair to good.