High maize stocks, which have put pressure on the maize price, combined with higher demand for cotton, particularly from China, have contributed to a favourable outlook for cotton production in South Africa.
International cotton prices, supported by sustained, growing consumer demand, have been positive in 2018. Increased consumption has resulted in lower ending stocks globally, and world prices reached a seasonal average of approximately R23/ kg from August 2017 to May 2018.
Global cotton production was estimated at 26,6 million tons for the 2017/2018 season. However, due to various challenges in the top three cotton-producing countries, namely India, China and the US, cotton production is expected to decline in certain areas within these countries in 2018/2019.
In India, the area planted to the crop is anticipated to decrease 3% because of boll worm infestation.
China’s supportive policies are expected to sustain the industry, but dry conditions in the country’s main cotton-growing region should lead to fewer hectares planted to cotton in the next season.
Similarly, arid conditions in the western parts of Texas in the US may affect a quarter of that country’s 2018/2019 cotton crop.
LOCAL TRENDS DRIVEN BY THE DROUGHT
Esta historia es de la edición June 22, 2018 de Farmer's Weekly.
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Esta historia es de la edición June 22, 2018 de Farmer's Weekly.
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