Formazor

Hurricane Irene Causes Damage to Cotton Crop; Drives Futures Prices Up

In the wake of Hurricane Irene, US farmers have begun to survey the extensive damage inflicted on their crops. Farms in one state, North Carolina, are now reporting significant damage to many of their harvests, including the all-important cotton crop. North Carolina is the United States' fourth-largest cotton grower, but after Hurricane Irene the state is now facing devastatingly low numbers of the popular product as well as a loss in profits.

North Carolina is not the only place struggling with the cotton crop this year. Pakistan, the world's fourth-largest cotton producer is also experiencing a significant decrease in the cotton crop due to excessive rain and flooding. Their output of cotton has decreased by more than 8 percent. As to be expected, the combination of both of these events has caused the price of cotton to rapidly increase.

Despite these supply issues, Fornazor International remains a leading exporter of US cottonseed to the world market. Demand for the commodity as an animal feed ingredient remains high, as dairy farmers have found whole cottonseed to be an excellent source of energy, protein, and fiber in cattle rations. Our strong relationships with domestic suppliers allow us to source cottonseed of the highest quality.