In addition to the reduction of cotton production, the Asian economy shows signs of resurgence, which points to an increased worldwide consumption of cotton products. While no changes in the cotton price are expected in the next 30 to 60 days, Dunavant expects that the price will rise from the current 58 cents per pound to 65 cents. He also predicts that an additional 500,000 acres of cotton will be planted this spring, increasing production by about 3 million bales to 19 million. This would translate into an export of up to 8.7 million bales, an increase of 2 million. The United States pledged to donate another 3 million metric tons of food to help the needy in foreign countries as well to give a boost to struggling U.S. farmers hit by depressed crop prices.
Every little bit helps.