Cotton Markets Searching for Balance

Cotton Markets
U.S. growers are expected to increase cotton ground by 7% in 2018 to approximately 13.5 million acres. ( Chris Bennett )

John Payne, the author of 'This Week in Grains and Oilseeds' recently spoke to AgDay's Clinton Griffiths about cotton planting and the hope for better prices.

"West Texas is putting [cotton] in the ground and it may be the best crop they've had in the last 10 years as far as the moisture profile looks," says Payne. "The temps are a little cold but really, it's about an acreage number right now."

A bigger crop and decent planting have started to weigh on prices in recent weeks.

"If we have a good crop, we could have 50% bigger supply leftover than we did this last year," says Payne.  "We export 80% of [our cotton] and so if we don't have a trade deal along with the US dollar being really strong, those are factors I think could limit price over the long run."

Watch the entire conversation in the video below.