As of April 12th, the conditions across much of the southeast into the Southern Plains are in drought categories ranging from severe to extreme (see first map below). The second attached map shows the Weather Trends forecast for May noting the year-over-year precipitation outlook for the month, with the primary cotton regions highlighted. For much of the cotton areas, our outlook is not looking at a y/y improvement (although there may be some improvement in the western belts); therefore, we are anticipating yield limitations for cotton this year. Clothing manufacturers have already been voicing concern over the high cost of cotton over the last several months, and since there has not been a significant increase in (prospective) planted acres, price impacts will likely be the result.
