A global glut of cotton means that far fewer acres of cotton will be planted in 2009, squeezing what is already a tight cottonseed supply.
"Sub 40¢ cotton does not bode well for 2009 cotton acreage, nor is it good news for dairy producers who feed whole fuzzy cottonseed to their high-producing dairy cows,” says Tom Wedegaertner, director of cottonseed research and marketing for Cotton Incorporated.
"After [this year's] crush, we will have 2 million tons of cottonseed available for feeding. The supply is half what we had two years ago, and it's not going to get any bigger next year,” he says.
Cotton Incorporated economists expect 1.1 million fewer acres of upland cotton will be planted in 2009 because of low prices.
Their message: Lock up supplies now. "Producers who are logistically situated to take advantage of cottonseed should seriously consider taking delivery if they can,” says Wedegaertner. "Feeding high producers two to three pounds per cow per day is a common strategy recommended by top nutritionists in lean times.”