Cotton Sale at Next GINeration Dominates Domestic Market for One Day | Harvests
On July 19, a local cotton grower represented by a sales manager at Next Gineration Cotton in Cullison hit the jackpot when his cotton sold for $1.49 a pound, a premium of 0.9573 that coded the highest price in the country for cotton that day, according to The Seam online marketing system.
“It was certainly an unusual event, a great thing,” said David Lingle, managing director of Next Gineration Cotton. “This guy, he’s from the area and doesn’t want to be named, had cotton withheld. He had set a price for it and someone offered to pay it on the open market. You could say it was luck, to be in the right place at the right time, to have the right cotton at the right price. That’s what we do here, we help farmers market their cotton, but we’ve never had a record for selling cotton at the highest price in the country before. We didn’t even think it would come close. But it was something.
Cotton, like most other crops in south-central and western Kansas, struggled to grow this year and last due to drought conditions.
“It’s in trouble. We have sleepy cotton in the fields right now, but a little rain can help. It is just starting to flower, so who knows how this year’s crop will develop. »
Lingle said while the number of acres planted in Kansas is up this year from last, cotton yields could likely be the lowest since the 19th century due to growing conditions.
“The hot weather has been so detrimental it’s just a guessing game now,” he said.
If yields turn out to be down, as they appear to be, it could actually drive up 2022 cotton prices, but it will affect last year’s carryover crop, Lingle said.
It is likely that most of the surplus will be sold, creating a shortage in the United States for cotton products, seeds and animal feed, if the drought persists. Despite these dire predictions, Lingle said cotton is still a better crop to grow during a drought season than wheat, beans or corn.
“It takes a lot less water to go from planting to harvesting with cotton,” Lingle said. “Then we have two products from it – we get the cotton and we also have the seed.”
Cotton harvesting and ginning by-products are also passed to the livestock industry as a filler when mixed with liquid protein.
“If we continue to have the type of dry weather we’re experiencing now, more and more people will turn to cotton,” Lingle said.
And if more record sales at high prices occur for the Next Gineration associates, it would make cotton growers in Lingle and area even happier.
“Heck ya, I’ll take that chance of the draw,” Lingle said. “We have a program here to help our customers select the price they want, and then when the buyer’s market hits that price, we can lock it in.”
Lingle said Next Gineration also helps cotton growers in the region pay for their harvest by offering gin processing in exchange for cottonseed.
“We buy the seeds from the farmer and store them here at the warehouse,” Lingle said. “Then we credit the cost of that seed per bale to the cotton processing to help the farmer. It’s a win-win situation for all of us.
Lingle said the big buyers of cotton in the world market right now are Vietnam, Pakistan and Turkey. High quality cotton from the United States is preferred over that produced in other countries.
International cotton speculators often come to Cullison to tour Next Gineration’s facilities. The Kansas Department of Agriculture invites tourists and farmers to see what happens at the processing center.
“We tour a lot,” Lingles said. “Everyone is shocked at everything we do here.”
Innovative equipment upgrades and continued attention to marketing advancements have enabled Next Gineration to capitalize on payments from the cotton industry. And a little luck doesn’t hurt either.