The U.S. cotton crop on the whole is looking up from last year, according to a recent Bloomberg news report. Estimates project a 9.2 increase in overall U.S. production from 2011. Last year’s crop was down, in part, because of the historic drought affecting Texas cotton.
The cotton crop for the marketing year started Aug. 1 and will total 17 million bales, according to the U.S. Department of Agriculture (USDA). The area to be harvested will rise to 10.5 million acres from 9.46 million acres this year, according to the USDA report.
Cotton market prices have fallen 68 percent since reaching a record $2.197 a pound on March 7, 2011. Early this week, futures for December delivery fell 1.3 percent to 68.42 cents.
American growers are expected to export some 11.8 million bales this marketing year. The USDA reduced its forecast for this year’s surplus to 3.2 million bales from 3.4 million bales projected last month.