# Cottonseed too cheap, but dairies are frugal

> Cottonseed cooperative executive Sammy Wright told the Southern Cotton Ginners Association conference that cottonseed is underpriced and that its use in dairy rations depends on price, since dairies drop it when prices rise. He said crushing has fallen to about one third of US production, held near 1.8 million tons, and tied the industry's fortunes to a dairy sector facing consolidation and falling milk consumption.

- Date: 2020-04-01 · published 2020-04-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/53747-cottonseed-too-cheap-but-dairies-are-frugal
- Commodities: [Cottonseed Meal](https://feedsoft.ai/c/CSM.md)

## Why it matters

Cottonseed loses dairy ration share whenever its price rises, which caps demand and keeps prices weak. Persistent dairy weakness points to continued soft demand for cottonseed meal as a feed ingredient.

## Read by commodity

- CSM: bearish ▼

## Sources

- farmprogress.com: https://www.farmprogress.com/farm-business/cottonseed-too-cheap-but-dairies-are-frugal

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.