This week, the National Cotton Council released their monthly cotton economic review report. The crop production estimate for upland cotton in the Southwest region which includes Kansas, Oklahoma and Texas is pegged at 8.97 million bales, across 5.77 million harvested acres. Regional yield is projected to be 747 pounds, which is 18 pounds higher than the 5-year average of 729 pounds per harvested acre.
Crop progress and conditions remain very favorable in the U.S. and Southwest, with 95% of the Kansas crop rated fair or better, while 96% of the Oklahoma crop and 94% of the Texas crop is rated fair or better.
Crop quality continues to improve as harvest progresses. According to USDA, through the week ending October 7, 96.5% of the U.S. crop received Color grade 41 or better, an increase from the 5-year average of 83.1%. The Southwest region showed the largest improvement in Color grade with 96.8% of the crop graded at 41 or better. Average staple length for the U.S. is currently a 37.0, slightly up in all regions compared to the 5-year average except the West.
Cotton continues to remain competitive as world and U.S. cotton prices have increased over the past several weeks. Since September 23, the average of the 5 lowest Far East quotes has increased 14.22 cents/ lb. to 112.99 cents for the week ending October 7. The low U.S. quote for the Far East (USFE) increased 16.65 cents/lb. over the same period taking a value of 118.30 cents for the week ending October 7.
This month’s World Agricultural Supply and Demand Estimates (WASDE) report estimated the average price received by farmers for U.S. upland cotton for the 2020-21 season was 66.30 cents/lb. The current forecast for the 2021-22 season is 90.00 cents/lb.
Additionally, according to USDA-NASS the average price received for cottonseed for the 2020-21 crop year is estimated at $194/ton. In comparison, the September 2021 USDA/ERS Oil Crops Outlook report forecast average cottonseed price received for the 2021-22 season at $235/ton.