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Strong Exports Helping Drive Higher Cotton Prices In United States

• By  Textile Excellence
• March 23, 2017

In the US, Georgia growers can expect to make at least 5 to 6 cents more per pound of cotton than they received this time last year, according to Don Shurley, University of Georgia Cooperative Extension cotton economist.

The price is due to many factors, but the main cause is the increase in exports. "Most of our cotton now is exported - about three-fourths of it is going overseas," Shurley said. "Our exports are doing really well. US quality, especially here in the Southeast, has been just excellent in recent years." Shurley has been with UGA Extension for more than 26 years and believes that this year represents the best quality of cotton Georgia has produced in that time. Much of that improved quality is attributed to newer varieties and technology associated with those varieties.

However, some of the past year's yield potential was lost due to the late-season drought. The lack of rain prevented some of the yield at the top of the plants from fully developing. But because of the extended drought, growers were able to get into the fields and harvest the crop in a timely manner. Additionally, cotton acreage was up last year. Georgia planted 1.18 million acres, compared to 1.17 million acres in 2015, according to the UGA Farm Gate Value Report. This year, however, Shurley projects the acreage in Georgia may decrease due to estimated high peanut prices.                              

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