Cotton Market Trading at Highest Level Since May

DENVER, CO – According to the CoBank Knowledge Exchange Division’s Quarterly Economic Review, U.S. cotton growers ended the 2019 calendar year on a positive note. Cotton prices recovered from contract lows following a complicated growing season wrought with volatile weather. The persistently wet spring weather that inhibited cotton planting was followed by an extended period of drought and intense summer heat that stressed young cotton plants and negatively impacted yields and quality. Micronaire, which is a measure of fiber fineness and maturity, was higher than preferred in drought-affected regions and resulted in quality discounts for growers. This fall, farmers struggled with more weather complications during harvest, particularly in the Southwest where wet and humid conditions prolonged harvest progress and further reduced crop yields. Cotton prices last quarter recovered off contract lows as the market dialed in a smaller-than-expected U.S. cotton crop with nearby futures trading around 65 cents per pound in early December, up from a low of 58 cents per pound in September. The market closed on Tuesday (January 14, 2019) at 71.38 cents per pound – the highest level since mid-May.