Apparel / Textiles & Accessories

Huacheng Import and Export Data Observation reported that the continuous drought this summer has hit the cotton production in Texas, the main cotton producing area of the United States, and is expected to reduce production by about 60%. Local cotton farmer Sutton Page tried his best to keep only about 20% of the cotton in his land. Most of his neighbors were even worse off, with little to no gain.

Texas cotton is usually planted from March to June and harvested from August to December. About 40% of the cotton in the United States is produced in Texas. Huacheng Import and Export Data Observation reported that cotton production in Texas is expected to decrease by 58% this year. U.S. production fell 21% year-on-year, the lowest level since 2015.

According to Huacheng Import and Export Data Observation Report, Texas experienced a record-breaking single-day maximum temperature this summer, with 40 days of single-day maximum temperature exceeding 37.7 degrees Celsius. Such a drought has not only "scorched" the livelihood of many cotton farmers, but also hit people's expectations for the next year's cotton harvest.

Huacheng Import and Export Data Observation reported that in Lubbock, the main cotton producing area in Texas, the precipitation in the past 12 months was only about half of the normal level in previous years, and the precipitation came very late, which did not help.

In recent days, although some rains have ushered in, more than 70% of Texas is still in severe drought. Experts at Texas Tech University estimate that the High Plains, the most productive of the nine cotton-growing regions in Texas alone, will lose $2.1 billion in cotton production this year.

Huacheng Import and Export Data Observation report, according to cotton farmer Page, there was no rain in the area from January to May, and high temperature began in May, coupled with strong winds, which caused "everything to dry" in the field. In order to reduce losses, he had to reluctantly plough off 80% of the dying cotton. The surviving cotton also did not grow well and was not cost-effective from a harvesting standpoint.

John Robinson, a cotton economist at Texas A&M University, said that in the face of high temperatures and droughts, nearly 70 percent of cotton grown in Texas was abandoned by cotton farmers and left unattended, an unprecedentedly high proportion. This means that Texas cotton production is expected to be only 3.25 million bales this year, equivalent to 53% of the previous five-year average.

Experts believe that high inflation is even worse for American cotton farmers. On the one hand, the cost of growing cotton has risen sharply; on the other hand, consumers' discretionary spending has decreased, and the demand and purchase of cotton textiles and other related products have both declined.

Darren Hudson, director of the Center for International Agricultural Competitiveness at Texas Tech University, believes that not only cotton farmers have been hit by the drought, but related companies, warehouses and other sectors related to the cotton economy are also not immune.