Cotton contracts for December fell 1.5 cent, or 1.7%, to 86.18 cents per lb at 1310 ET (1810 GMT) having shed as much as 4% at 84.19 cents a lb after USDA's monthly World Agricultural and Supply Demand Estimates (WASDE) report. "All in all, this report is trying to show the current reality of the market, both on the supply and the demand side, with the latter being the one that could come back at any point, unlike production," said Valentin Olah, cotton risk management consultant at StoneX Group. The USDA report saw U.S. ending stocks 200,000 bales higher at 3 million bales, which Olah said was surprising and "softens a bit the tightness of ending stocks, for now."
The worst megadrought in 1,200 years continues to burden the American West, and it's forcing farmers to make tough decisions about their crops.
American Farm Bureau Federation Economist Daniel Munch joins Yahoo Finance Live to discuss how ongoing weather conditions, specifically drought, are having a devastating impact on U.S. agriculture.