{"id":3173,"date":"2023-10-27T15:31:00","date_gmt":"2023-10-27T20:31:00","guid":{"rendered":"https:\/\/agrilife.org\/agecon\/?p=3173"},"modified":"2023-10-31T15:37:05","modified_gmt":"2023-10-31T20:37:05","slug":"high-plains-ag-week-10-27-2023-peanut-market-update","status":"publish","type":"post","link":"https:\/\/agrilife.org\/agecon\/high-plains-ag-week-10-27-2023-peanut-market-update\/","title":{"rendered":"High Plains Ag Week 10\/27\/2023 \u2013 Cottonseed Markets"},"content":{"rendered":"<div id=\"attachment_3181\" style=\"width: 291px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-3181\" class=\" wp-image-3181\" src=\"https:\/\/agrilife.org\/agecon\/files\/2023\/10\/20210730_Field_Crops_LM_0135.jpg\" alt=\"\" width=\"281\" height=\"187\" \/><p id=\"caption-attachment-3181\" class=\"wp-caption-text\">(Laura McKenzie\/Texas A&amp;M AgriLife Marketing and Communications)<\/p><\/div>\n<p>When we think of cotton, we think primarily of the fiber used in producing clothing, bed sheets, towels, and other textiles.\u00a0 However, cottonseed, a byproduct of cotton production, has a variety of uses that make it valuable as well.\u00a0 In today\u2019s post, we discuss the uses and pricing of cottonseed.<!--more--><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-3177\" src=\"https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Table-102723.png\" alt=\"\" width=\"1704\" height=\"431\" srcset=\"https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Table-102723.png 1704w, https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Table-102723-1024x259.png 1024w, https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Table-102723-768x194.png 768w, https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Table-102723-1536x389.png 1536w\" sizes=\"auto, (max-width: 1704px) 100vw, 1704px\" \/><\/p>\n<h2><strong>Cottonseed Markets<\/strong><\/h2>\n<h3><strong>How is Cottonseed Used?<\/strong><\/h3>\n<p>Cottonseed is a byproduct of the cotton lint production process.\u00a0 As cotton grows, the plant develops bolls, within which new seeds grow.\u00a0 Cotton lint grows from these seeds as the plant matures.\u00a0 At harvest, cotton bolls are separated from the plant and taken to a gin, where the lint is separated from the seed.\u00a0 Cotton lint is then pressed into bales, which are eventually sold to textile mills, while the seed is sold either to oil mills as a source of oil or to livestock and poultry operations as feed.<\/p>\n<p>Cottonseed oil is used in a variety of ways, including as a cooking aid and as an ingredient in various cosmetic products.\u00a0 For more information on the potential benefits of cottonseed oil as a cooking oil, read <a href=\"https:\/\/www.usda.gov\/media\/blog\/2023\/03\/07\/healthier-frying-withcottonseed-oil\">this post from USDA<\/a>.<\/p>\n<p>Two byproducts of the crushing process used to produce cottonseed oil are cottonseed hulls, the outer covering of the seed that is removed before crushing, and cottonseed meal, or what\u2019s left over after the oil is extracted from the seed.\u00a0 Both byproducts, along with the whole cottonseed, are useful as feed for livestock.\u00a0 For more on using whole cottonseed in dairy operations, read <a href=\"https:\/\/www.cottoninc.com\/cotton-production\/ag-research\/cottonseed\/whole-cottonseed-a-super-feed-for-dairy-cows\/\">this article from Cotton Incorporated<\/a>.<\/p>\n<h3><strong>What Determines Cottonseed Prices?<\/strong><\/h3>\n<p>Like any commodity, cottonseed price is primarily determined by market forces of supply and demand.\u00a0 On the supply side, the amount of cottonseed available depends on the cotton produced.\u00a0 Higher levels of cotton production lead to greater availability of cottonseed.\u00a0 All things equal, this will have a bearish impact on cotton seed prices (Figure 1).<\/p>\n<h4 style=\"text-align: center;\"><strong>Figure 1. Texas cottonseed prices (mkt. year average) and Texas cotton production, 2001-2020<\/strong><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3174 aligncenter\" src=\"https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Picture1-102723.png\" alt=\"\" width=\"675\" height=\"494\" \/><strong>Source: USDA NASS Quick Stats Database<\/strong><\/h4>\n<p>Also important to the price of cottonseed is the price of similar commodities that can act as substitutes for cottonseed and its related products.\u00a0 When the price of cottonseed increases relative to its substitutes, the buyers of cottonseed and its related products can easily shift to using a substitute commodity.\u00a0 For this reason, the price of cottonseed tends to be highly correlated with the price of those substitute commodities.<\/p>\n<p>One such substitute whose price is highly correlated with cottonseed prices is soybeans.\u00a0 Two byproducts of soybean production, soybean oil, and soybean meal, are extremely close substitutes for cottonseed oil and cottonseed meal.\u00a0 Thus, changes in the price of cottonseed tend to reflect changes in the price of soybeans over time (Figure 2).<\/p>\n<h4 style=\"text-align: center;\"><strong>Figure 2. Texas cottonseed prices (mkt. year average) and Texas soybean prices (mkt. year average), 2001-2020<\/strong><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-3175 aligncenter\" src=\"https:\/\/agrilife.org\/agecon\/files\/2023\/10\/Picture2-102723.png\" alt=\"\" width=\"675\" height=\"494\" \/><strong>Source: USDA NASS Quick Stats Database<\/strong><\/h4>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When we think of cotton, we think primarily of the fiber used in producing clothing, bed sheets, towels, and other textiles.\u00a0 However, cottonseed, a byproduct of cotton production, has a&#8230; <span class=\"read-more\"><a href=\"https:\/\/agrilife.org\/agecon\/high-plains-ag-week-10-27-2023-peanut-market-update\/\">Read More &rarr;<\/a><\/span><\/p>\n","protected":false},"author":2185,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[31,19,9,26,1],"tags":[],"class_list":["post-3173","post","type-post","status-publish","format-standard","category-business-management","category-cotton","category-high-plains-ag-week","category-marketing-plan","category-uncategorized","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>High Plains Ag Week 10\/27\/2023 \u2013 Cottonseed Markets - Ag Economics on the Plains<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/agrilife.org\/agecon\/high-plains-ag-week-10-27-2023-peanut-market-update\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"High Plains Ag Week 10\/27\/2023 \u2013 Cottonseed Markets - Ag Economics on the Plains\" \/>\n<meta property=\"og:description\" content=\"When we think of cotton, we think primarily of the fiber used in producing clothing, bed sheets, towels, and other textiles.\u00a0 However, cottonseed, a byproduct of cotton production, has a... 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