USDA: Cotton crop to increase this year

Posted by IronPlanet on Jun 12, 2012 2:56:00 AM

The U.S. is the world's top cotton exporter, and the U.S. Department of Agriculture (USDA) is predicting another bountiful year for the country's cotton producers, according to Bloomberg BusinessWeek.

A recent report by the USDA indicates U.S. cotton exports for the marketing year beginning August 1 will total approximately 17 million bales. The projection is not far off from the thoughts of analysts surveyed by Bloomberg, who believe the country will produce 17.63 million bales this season.

The latest report from the USDA is unchanged from the organization's report in May. If the 17 million bales come to fruition, it will be a 9.2 percent increase compared to 2011.

A number of factors will make this a better year for cotton growers than last year. Recent rains from Tropical Storm Beryl are likely to help with the growing in areas like Georgia and Texas, major centers for cotton in America. That's a major turnaround from last year, when Texas was ravaged by drought.

The better weather this year is one of the reasons the USDA believes 10.5 million acres of cotton will be harvested this year, just over one million acres more than were harvested last year.

If the predictions are true, the U.S. will ultimately make up a larger percentage of the world's cotton crop than it did last year. While America's contribution is expected to rise, other countries will probably produce less cotton this year, according to the USDA. The USDA believes 115.29 million bales will be produced in the year beginning August 1st, compared to 123.07 million for the current marketing year.

Cotton growers in the U.S. should ensure they're prepared by getting all of their agricultural equipment in order. The online auction site IronPlanet offers a wide array of combine harvesters, tractors and much more, all of which are backed by IronClad Assurance inspection reports.

Topics: Industry Headlines