NCC projects stronger cotton prices in 2021
The National Cotton Council is projecting cotton prices to remain relatively strong in 2021.
Jody Campiche, vice-president of economic and policy analysis with the NCC says there are several factors that contribute to their price projections for this year. “One of them is the recovering cotton demand,” he says. “We’re seeing a much faster recovery than was expected. And with mills needing cotton to buy, they are purchasing more cotton and particularly they’re purchasing more US cotton.”
She tells Brownfield exports were strong in 2020 despite shutdowns from the coronavirus pandemic and yields were lower last year due to weather related issues. “We are going to start the 2021 crop year with less stocks,” she says. “Lower stocks in the US will help hold those prices up as we actually get into the 2021 crop year that begins later this year.
Campiche says the US cotton industry will see face competition on the global market this year as countries like Brazil and India do have larger stocks of cotton on hand.