Dry conditions in Texas push cotton prices up
Cotton industry information resource Cotlook has published its summary of the global market for the month of April 2021.
Among the points of note, the report said that, after losing ground in previous months, international cotton prices moved higher in April, reaching a high of nearly $0.97 per pound late in the month.
It said that the main reasons for the price increase included weather conditions in West Texas, which, Cotlook said, “are decisive to the size of the US crop”. Some cotton-growing areas there have reported that conditions are “abnormally dry”. Others have gone as far as to describe the situation as being one of “exceptional drought”.
Another factor is that prices for competitive crops are also very good and the report said this could lead to a shift away from cotton.
