US farmers to plant 13.6 acres of cotton in 2012
Texas, the largest cotton-producing state in terms of output, has had drought conditions for more than a year, which reduced production in the western part of the state in 2011. The National Cotton Council is expecting the drought to ease in 2012 and has estimated production would increase by 17% to 18.3 million bales.
However, actual production could fall to less than 16 million bales if extreme drought continues, cotton council vice president Gary Adams said. That output would be comparable with 2011, when production totaled 15.67 million bales.
"Final production will be very dependent on weather developments, particularly in the southwestern US," Mr. Adams said at the industry group's annual meeting in Fort Worth, Texas.
"If conditions worsen, we could see the US crop be two million bales lower than early-season expectations."
The cotton council surveyed about 1,500 farmers in December and January to create its forecast for planted acreage. The survey showed the largest drop in cotton acreage in the Southeast, with an expected decrease in acres of almost 13% compared with 2011, as some farmers choose to plant more-lucrative crops.
"The expected drop is consistent with current market signals," Mr. Adams said. "Since 2011, cotton prices have weakened relative to competing crops such as corn, soybeans and peanuts."
