The first quarterly meeting of 2022 of the Plains Cotton Growers, Inc. Board of Directors was held Wednesday, January 12, at the FiberMax Center for Discovery in Lubbock, Texas.
Dr. John Robinson, Texas AgriLife Extension Economist, provided an initial cotton market outlook. Robinson indicated U.S. producers are positioned to plant 12.5 million acres of cotton in the U.S., up 6.6% from 2021. He noted that Texas producers could plant up to 7 million of the 12.5 million acres projected in the early 2022 acreage surveys.
The latest supply and demand numbers included in the latest WASDE report leans toward only modest changes in ending stocks year-over-year and fundamentals that lean toward a continuation of support for cotton prices at current levels into 2022.
He added that with the current weather situation in Texas, speculative activity will likely become a driving influence at one or more points during the season.
Although less likely, Robinson said there is some downside price risk in the marketplace from growers experiencing better moisture and growing conditions coupled with higher planted acreage, a failure to resolve current supply chain bottlenecks or if anything happens that slows the current economic recovery.
Dr. Jourdan Bell with Texas AgriLife Research and Extension gave a presentation on the 2021 Panhandle and High Plains Replicated Agronomic Cotton Evaluation (RACE) seed variety trial results which will be a valuable resource as producers start to plan and make cotton seed selections for the 2022 season.
Overall, according to the select trial data presented, varietal stand counts were above average across most of the Panhandle and High Plains region. Preliminary data from irrigated trials across all cotton seed varieties planted in the trial in the Panhandle averaged from 967 lint pounds per acre to 1165lbs, with top varieties ranging in the upper 1100- 1300lb range. Dryland trials relatively followed suit ranging from 393-663lb on average.
Similarly, select High Plains dryland trials presented at the meeting averaged 400-750lbs in lint yield, whereas irrigated trials when compared to the Panhandle were slightly lower on average at 600- 800lbs in certain trial locations. More information on RACE trial data will be available soon once preliminary data is fully reviewed and published.
Additionally, Shawn Wade with PCG gave a brief overview of USDA farm program and federal crop insurance program options that producers will have to decide on leading up to the March 15 FSA ARC/PLC signup deadline and Federal Crop Insurance program sales closing date as a precursor to PCG’s February 2, 2022 ARC/PLC and Crop Insurance Update meeting.
PCG PAC Chairman Johnie Reed wrapped up the meeting with an update on the current state of political and fundraising efforts of the PAC and encouraged grower members to participate in these efforts