Texas cotton plantings to rise on high prices in 2004

Cotton plantings in 2004 for Texas, the biggest cotton-growing state in the country, will likely increase because of the robust rally in cotton futures prices, an economist said Monday.
Carl Anderson, an economist for Texas A&M University, told Reuters in an interview at the start of the annual Beltwide cotton conference that Texas 2004 cotton plantings should rise to between 5.8 million and 6.0 million acres from 5.6 million acres in 2003.
He attributed the rise to "the good price" of cotton futures on the New York Board of Trade.
Prices in New York have risen above 70 US cents a lb, a level last seen in 1998. Last October, cotton prices soared to 84.80 cents, basis the spot December cotton contract. It was the highest price for cotton since late 1995.
Cotton prices have recovered strongly since plunging to a 29-year low in October 2001 of 28.20 cents, basis the then spot December contract.
Of the 5.6 million acres planted by Texas in 2003, only 4.4 million acres harvested as 1.2 million acres were lost due to hail and sandstorms that destroyed cotton plantings in the spring.
Texas cotton output in 2003 reached some 4.2 million (480-lb) million bales, against production of 5.04 million bales.
The total US cotton production by the US Department of Agriculture (USDA) is seen hitting over 18 million bales.
Anderson said that he expects the state to produce 5.0 million bales of cotton in 2004, but that much will depend on growing weather, yields and the apparent success of the boll weevil eradication program in the state.
China and a new US trade pact with Central America will loom large over this week's annual meeting of the American cotton industry, officials and analysts said on Monday.
China has emerged as a huge force in the world cotton and textile trade, especially after harsh weather savaged its crop and forced it to turn to imports to feed its booming textile and apparel mills.
At the same time, a dispute erupted between the United States, the world's top trading power, and China, the fifth largest trading country, over the strong pace of Chinese textile exports to American shores.