Due to extreme weather conditions, new cotton crops in the United States have never experienced such a complex situation this year, and cotton production is still in suspense.
This year, the La Nina drought reduced the cotton planting area in the plains of Southern United States. Next comes the late arrival of spring, with heavy rainfall, floods, and hail causing damage to cotton fields in the southern plains. During the growth stage of cotton, it also faces problems such as drought affecting cotton flowering and bolling. Similarly, new cotton in the Gulf of Mexico may also be negatively affected during flowering and bolling periods.
All of these factors will result in a yield that may be lower than the 16.5 million packages predicted by the US Department of Agriculture. However, there is still uncertainty in the production forecast before August or September. Therefore, speculators may use the uncertainty of weather factors to speculate and bring fluctuations to the market.
Post time: Jul-17-2023