Monday, June 28, 2010

Futures Market, Rotation Positive For Cotton

Carroll Smith


Arkansas, which is the third largest cotton-producing state in the country, reported planting 520,000 cotton acres in 2009. Fred Bourland, with the University of Arkansas Division of Agriculture, says two major factors that will influence the fate of cotton acres in his state are the price of soybeans and how to deal with the growing problem of resistant pigweed. He also points out that Arkansas has maintained about 50 percent of its cotton acreage  based on the million acres that were planted in 2006.

"It seems that the overall consensus in our state is that cotton acres will not decrease any more here unless the price differentials between cotton and soybeans become even greater," Bourland says. "If soybean prices jump up a bit more, cotton acres may decrease some, but I sense that we have already reached our base."

Another positive indicator that cotton acres could be on the rise is that soybeans typically are not a good option in northeast Arkansas on the real sandy soils. Also, corn has been planted on silt loam soils for the past couple of years as a rotation crop, and it's about time for that land to go back into cotton to realize rotation benefits.

source : cottonfarming

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