Cotton Growers Pan Gold Nugget from USTR Testimony
WASHINGTON, DC – COVID-19 has hit many countries and many industries, and agriculture is not immune. However, on Wednesday, U.S. Trade Representative Robert Lighthizer talked about the Phase One Trade Agreement with China and in particular, Chinese purchases of U.S. cotton. In answering a question originally focused on cotton yarn, he explained that “they have bought, we believe, about a billion dollars (worth of U.S. cotton) and the target is substantially north of that. They bought a fair amount of cotton and it’s particularly important as an indicator because their apparel business is slow, for obvious reasons (COVID-19).” If that is in fact the case, the U.S. cotton industry might see strong demand into the next marketing year, which in turn could bolster prices that are about 15 cents per pound under the cost of production. “We believe they bought a fair amount and they have a fair amount to go” Lighthizer concluded, “and we expect them to live up to the agreement.”
(SOURCE: All Ag News)