USDA's latest Crop Progress report shows 9 percent of the nation's cotton is now planted. That's right on par with the five-year average. Texas is about 12 percent done and Georgia is 6 percent planted. While Georgia is ahead of the average pace, many southern states are running behind following a spate of spring storms.
In an interview with AgDay's Clinton Griffiths, Craig VanDyke of Top Third Ag Marketing says progress is moving in the major growing areas.
"When you look at the competition, wheat, soybeans, corn and milo the cotton market is gaining some traction on acreage," says VanDyke. "The latest USDA report caught me off guard as well as the market on where acreage numbers are expected to be and that's been a nice boost for the cotton market."
VanDyke says recent market strength is also being driven by production issues and demand abroad.
"India is having problems in cotton production and India is obviously one of the major competitors," says VanDyke. "China's cotton reserves are debatable, the exact number is unknown but we've seen China around the market."
He thinks the market looks friendly and has seen a nice uptrend for the past two months.
"We saw what cotton could do last year but right now when you look at December or March of 2020 contracts, 75 to 78 cents to me is a decent spot to get something going," says VanDyke. "As far as ag commodities go [cotton] has a lot of potential especially if the acreage numbers are real and we have weather problems."
He says in cotton country prices could help steal acreage from soybeans for 2019.
To hear the entire conversation click on the video.