The cotton market price is not what growers want to see.
“[The cotton market is] probably 15 cents lower than we were a year ago,” says John Payne of Daniels Trading.
Payne says there are a couple of reasons behind the price jump. Part of it is because of the trade war with China. The second is because of an acreage jump.
“I think that’s something that won’t happen again,” says Payne. “I think we will start to see acreage fall.”
Payne says the U.S. exports 85% of what it grows.
“When you talk about a strong U.S. dollar or trade problems globally, cotton is really going to suffer here,” says Payne.
Payne says he is going to watch Chinese currency and quality concerns.
Click here to watch his analysis with Clinton Griffiths on AgDay.
AgDay Weather: Snow Could Arrive in Great Lakes Region This Week
Behind The Scenes: FFA Chapter Competes For Top Award At Convention