New York Cotton Futures (recent contracts) have strengthened since late April, rising to about 155.95 cents / pound in early May, about 10% higher than a month ago. The growth rate since the end of 2021 has reached about 30%, hovering near the peak since May 2011.
It is reported that India, which accounts for more than 10% of the world's cotton exports, may stop exporting cotton. The United States, the world's largest cotton producer, has a high risk of crop failure due to abnormal weather.
Due to the food shortage caused by the crisis in Ukraine, expectations of reducing cotton planting and increasing soybean planting in the United States are also pushing up the market.
Texas, one of the main agricultural producing areas in the United States, is experiencing its worst drought since 2011.
Kody bescent, chief executive of Plains cotton growers Inc., the largest U.S. cotton producer, said U.S. cotton growers gave up 55% of their acreage in 2011, a record high. Recent monitoring data suggest that the current drought may be worse.