Commodities & Metals

Cotton Prices Stay Low on Chinese Stockpiles, Big Crops

Last year at this time, cotton prices were hovering around $2.10/pound. They’re less than half that today, and growers are wondering if $0.95/pound will return. Cotton prices dropped below $1/pound in mid-November and wobble around $0.93/pound today.

There appear to be two constraints on prices. First, China just completed building up a stockpile of nearly 19 million 500-pound bales as it replenished stocks from previous releases that were intended to keep prices in the country reasonable for cotton mills. Over the past two years, China accounts for two-thirds of the increase in cotton stockpiles.

Second, the US Department of Agriculture estimated cotton plantings in the US this year of 13.16 million acres, higher than a market estimate of 12.9 million acres. That means more cotton and lower prices.

The only possible bright light is the government of India’s ban on exports, instituted last month, is likely to last until the country’s currency strengthens versus the Chinese yuan. Which could take a long time.

Paul Ausick

The #1 Thing to Do Before You Claim Social Security (Sponsor)

Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.

A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.

Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.