By Archie Flanders, Agricultural Economist
The April 2017 WASDE report for the supply and demand situation of field crops maintains market fundamentals that are resulting in expectations of low commodity prices for the upcoming 2017 crop year. Supplies have historical cycles, and low crop price projections are following corresponding trends of markets with excess supply. Global demand for U.S. cotton is leading to projected decreases in ending stocks-to-use for the 2016 market year. Thus, beginning stocks-to-use for the 2017 market year (the upcoming crop to be planted) is projected low by historical measures. This is leading to increased cotton prices as market forces seek to induce planted acreage.