Reduced, delayed cotton planting increase demand

Farm Journal logo

Source: Cotton, Incorporated

New crop cottonseed supplies available to dairies are expected to remain tight as U.S. farmers swap cotton acres for corn and soybeans across many parts of the Cotton Belt.

U.S. cotton production will likely drop 19 percent, from 2012 to 2013, according to the World Agricultural Supply and Demand Estimates Report released May 10, 2013. Total U.S. cottonseed production in 2013 is forecast to reach 4.58 million tons, compared to 5.76 million tons in 2012, resulting in about 2 million tons available for feeding.

Delayed planting, due to cool and wet weather, may further dampen supplies. While it’s been wet across much of the Cotton Belt, Texas remains dry.

Twenty-three percent of the 2013 U.S. cotton crop had been planted by May 13, as documented in the U.S. Department of Agriculture (USDA) National Agricultural Statistics Service Crop Progress Report. This compares with 38 percent, the five-year average. Additionally, USDA reported that the 2013 planting season is off to its slowest start since 1984.

"As cotton planting is delayed, farmers are less likely to plant cotton and more likely to plant soybeans," says cottonseed merchant Larry Johnson of Cottonseed LLC, La Crosse, Wis.

"Furthermore, as planting is delayed, we’re more apt to see a smaller crop due to lower yields."

For dairy producers, this means potentially tighter supplies and slightly higher prices for new crop cottonseed, he says. "The new crop cottonseed price has been rallying from increasing cottonseed demand coming out of Asia, and a shortage of forages."

"We’re still feeling the impact of last year’s drought on forage supplies," Johnson continues. "Additionally, we’re seeing a fair amount of alfalfa winterkill this spring."

Despite tight supplies, Johnson still sees a strong fit for cottonseed in dairy cow rations. "Many dairy producers are currently buying new crop cotton," says Johnson. "Whole cottonseed combines protein, fiber and energy, and works well with other ration ingredients to deliver a balanced and cost-effective ration."

Cotton Incorporated suggests producers get in touch with their cottonseed merchant or feed dealer to check prices, or submit a request for cottonseed quotes through its Cottonseed Marketplace. Also, those interested in receiving periodic updates on the available cottonseed supply, along with feeding, storage and booking strategies, can sign up for the Whole Cottonseed E-newsletter

Cottonseed is an excellent source of fiber, protein and energy. Typical rations can include up to 15 percent cottonseed on a dry matter basis. For more information, including reports on market conditions, feeding information and a list of suppliers, visit www.wholecottonseed.com.

Cotton Incorporated, funded by U.S. growers of upland cotton and importers of cotton and cotton textile products, is the research and marketing company representing upland cotton. The Program is designed and operated to improve the demand for and profitability of cotton.

 

 

Latest News

Dairy Finances: Being Prepared For Tough Times Has Big Payback
Dairy Finances: Being Prepared For Tough Times Has Big Payback

If there’s any assurance about the economic picture for the dairy industry and agriculture in general going forward in the next few years, it’s that volatility will be a constant.

Who “Nose” When a Calf is Getting Sick?
Who “Nose” When a Calf is Getting Sick?

If you want to stay ahead of calf health and catch sickness in its earliest stage, University of Minnesota Graduate Student Abbigail Prins offers a handy detection tip.

How To Outline Clear Direction For Each Role On Your Team
How To Outline Clear Direction For Each Role On Your Team

“The single most important tool to predict peak performance is a very well-developed job description,” Dave Mitchell says.

Know Your Business Pressures, Trends And Actions For Big Breakthroughs
Know Your Business Pressures, Trends And Actions For Big Breakthroughs

Mark Faust outlines a simple formula to improve profitability and create more value for you and the customer.

Robotic Technology Helps These Dairies Become Better
Robotic Technology Helps These Dairies Become Better

Smart farming robotic technology is all in the name of cow comfort, efficiency and productivity. 

Milk Prices Continue to Fizzle Out
Milk Prices Continue to Fizzle Out

A wild week in milk markets finished on a fizzle.