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Cottonseed Pricing Report: October 2018

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The cottonseed market focus through October primarily was focused on weather events that occurred affecting some primary cotton-growing areas in the US that potentially impacted cotton yields and quality. Earlier in the month, there were finalized negotiations regarding the NAFTA 2.0 agreement to form the new US-Mexico-Canada Agreement (USMCA). This agreement has brought an optimistic outlook for the US dairy industry as it focused on some key US dairy-related trade topics with both Canada and Mexico. Along with the weather and trade agreement information, USDA increased 2018/19 cotton production to 19.8 million bales in its October Crop Production report released on October 12. This increase in cotton production also led USDA to boost 2018/19 cottonseed production by 28,000 tons to 6.18 million tons in the October Oilseeds Outlook report released on October 15. The increase in cotton production mostly was due to an increase in cotton yields for several states but did not account for damage from storms.

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