Industrial Cluster: National Cotton Council (NCC) Surveys That The Cotton Planting Area In The United States Is Decreasing

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According to the survey results of American cotton planting intention in 2023/24 previously released by the National Cotton Council (NCC), the area of American cotton planting intention in the next year will be 11419000 acres (69313000 acres), a year-on-year decrease of 17%. At present, some relevant industry organizations in the United States have speculated that the cotton planting area in the United States will decrease significantly next year, and the specific value is still being measured. The agency said that its calculation results of the previous year were 98% similar to the expected cotton planting area released by USDA at the end of March.

The agency said that income is a key factor affecting farmers' planting decisions in the new year. Specifically, the recent cotton price has dropped by nearly 50% from the high in May last year, but the price of corn and soybeans has declined slightly. At present, the price of cotton, corn and soybeans is at the lowest level since 2012, and the income from planting corn is higher.

In addition, inflation pressure and farmers' concern that the United States may fall into an economic recession this year also affected their planting decisions. Because clothing, as a consumer product, is likely to be part of consumer spending cuts during the economic recession, so cotton prices may continue to be under pressure.

In addition, the agency pointed out that the estimation of the total cotton output in the new year should not refer to the per unit yield in 2022/23, because the high abandonment rate also promoted the per unit yield. Cotton farmers abandoned the cotton fields that could not grow smoothly, leaving the most productive part.