Price fall will see a grower rethink says cotton expert Pete Johnson


A softer market is forcing cotton growers to rethink planting programs this season.

The cotton price has fallen about 20 per cent from the highs of some months ago.

Pete Johnson, managing director of Cotton Compass, says changes in China to the cotton stockpile and reducing the red tape for Chinese growers wanting to sell into the market are one reason for the fall.

He says the end of the drought in Texas has also boosted production hopes.

Mr Johnson says all the action in the US and China is pushing the global price down further.

“Two months ago, the price for next season was about $450-$460 a bale.

“Right now we are just struggling to hold on to that $400 a bale mark.

“So there has been a big drop in prices largely due to some some better production figures coming out of the US, as well as we are starting to feel the impact of some policy changes in China.

“Such a sharp drop, combined with the fact that we are looking at a lighter water year, I guess, (means) certainly we have got some growers looking at changing their production plans.”