Cotton Planting in North Carolina Approaching Insurance Deadline
The weather has shuffled the cards again when it comes to allocation of acres, as well as futures prices for corn and cotton. David Parrish, CEO of the North Carolina Cotton Producers Association sees cotton acres staying about the same as predicted back in March:
"At this point I think we will get planted what we were anticipating to get planted. Today is really the first good planting day for cotton this spring. The cool damp weather is not good cotton planting weather. The good thing is that we were anticipating pull back from last years acres, but time is running out and we need to be out in the fields.”
The first insurance cut-off date for cotton in North Carolina is May 15th, and the drop-dead date is May 25th.
Cotton futures have slowly but steadily gained in the past few weeks, but Parrish says its probably not enough to bring someone back into the game:
“It’s not at the level that it will bring anyone back into it who wasn’t planning on cotton. Those who had planned on cotton may do a little more than originally intended.”
Of course, starting with good moisture is never a bad thing:
“If we could find a way to bank all of this spring time moisture and sell it back to them in the summer it would be fantastic. Its more the coolness that cotton doesn’t like, not the wetness.”
Speaking of Texas, parts of the state are going into their third spring without significant moisture, and acre abandonment is projected to be high…but will it be enough to push prices higher? Parrish says once again, it’s too hard right now to know:
“It could, but my concern is China and what they have on hand. Its something to keep an eye on. Cotton does look a little more attractive than it did in Jan of this year.”
David Parrish, CEO of North Carolina Cotton Growers Association.