US Epidemic Hits Cotton Industry, Government Grants 30 Billion Bailout Fund

 

The US plain cotton farmers cooperative (PCCA) believes that the cotton planting area in the United States may be less than expected this year due to the fall in cotton prices and the cancellation of orders from foreign factories.

 

PCCA said the US Department of agriculture's 13 million 800 thousand acres were not realistic at all, and PCCA did not hear anyone wanting to expand their planting area. On the contrary, Texas's sown area is estimated to be only about 4 million acres this year, about 400 thousand acres less than last year. Most farmers hope that prices will rise when harvested in September or October, but the outlook is not optimistic, and the economic slowdown will continue for some time. Cotton prices may continue to fall for a long time.

 

Last week, the US Department of agriculture cut the world's cotton consumption by 6.4%, about 7 million 600 thousand packs, which means the global spinning loss is about 3 and a half weeks, accounting for 16% of the estimated spinning time from March to July. Meanwhile, the US cotton export forecast dropped to 15 million packs, down 9% from the 16 million 500 thousand package forecast in March. US agricultural counsellors expect US exports to Vietnam to fall by 15% this year to 3 million 200 thousand bales.

 

At present, although China's textile mills and garment factories are resuming production, factories in other parts of Vietnam, Turkey, Indonesia and Pakistan are still closed. Many factories in Asia are not accepting new orders for imported goods or processed products. The State University of agriculture and technology said that from the retail store to the manufacturer to the factory, the contract was cancelled on a large scale, which will eventually affect the production of US farms. The US industry expects the US Congress to help through farm relief programs.

 

It is understood that the United States Department of agriculture may provide the remaining $6 billion in CCC loans as a farm aid, plus $9 billion 500 million in agriculture related to the CARES act of Congress ($2 trillion), and an additional $14 billion fund from the CARES bill for the CCC account (July).