Market Analysis Stories
September 19, 2014
The current trading range continues, as the market analyzes the impact of flooding in the U.S., continued dryness in Australia and the first initial official announcement by the Chinese government with respect to its new cotton policy.
September 12, 2014
USDA’s September World Supply Demand report gives us no reason to believe that the narrow 62 to 72 cents trading range will change in the coming month. But the market will likely draw its direction from Mother Nature in the coming weeks.
September 11, 2014
Based on USDA’s September Supply Demand report, a smaller U.S. crop should provide some support for prices. But an increase in total world production, reduction in use and increase in stocks may also weigh on the market.
September 5, 2014
Ongoing anticipation of the Chinese government’s announcement regarding price supports for the 2014 crop has driven cotton prices back near the bottom of the current trading range.
September 2, 2014
The delay of deliverable 2014 world production supplies, coupled with limited availability of old crop export grade cotton, has kept a bit of a fire burning under the market.
August 29, 2014
As merchants and mills wait for new crop cotton to impact the market, they are finding out that supplies for nearby shipment are both pricey and hard to come by.
August 28, 2014
Anthony Tancredi of Louis Dreyfus Commodities says the most important thing for anyone in the market to know is what China’s cotton policy is. The problem: no one knows – or is sharing – the policy details.
August 25, 2014
Prices (Dec14 futures) appear to have turned trend up, at least for the short-term. But, they're likely to meet resistance around 68 cents, meaning we may have some rocky ground to plow in order to return to prices starting with a 7.
August 23, 2014
Concern over the amount of cotton available outside of China continues to dominate trading.
August 22, 2014
December cotton finally broke out to the upside in the past week on expanding volume and rising open interest, with the August 21 close marking the highest level in four weeks.
August 14, 2014
What many considered a very bearish August Supply/Demand Report has been digested by market forces and determined to be market neutral. Most likely, the 62 cent price floor has developed enough depth to protect the price from sliding any lower.
October 24, 2014
The same record that has been spinning for weeks is still playing. The 61 to 62 cent price resistance holds firm, attempts to close above 65 cents continue to be thwarted, and the potential for a short covering rally lingers strong in the background.
October 24, 2014
Volatility dropped this week, as the market is discounting a scenario in which prices are not expected to change significantly over the coming months. Once all harvest is complete and sorted out, we may see renewed pressure on cash prices.
October 11, 2014
After recently falling to the 61-cent level, prices have made a modest, but still welcomed, recovery.
October 3, 2014
Recent news from China has left the market cautiously bearish, mindful of the fact that there is still a lot of harvest time weather to negotiate.
October 3, 2014
Noting the predicted 1.8 million tons of surplus cotton production and changes in China's cotton policy, a recent report from International Cotton Advisory Committee says prices are unlikely to rise to the levels of the last two seasons.
September 29, 2014
Weighed down by unexpected announcements from China, cotton prices continued to trend lower and confusion reigned, as traders attempted to decipher the actual Chinese cotton policy.
September 26, 2014
This is not a good time to be trying to sell cotton. Nothing will appear relatively attractive at this point, but growers nevertheless need to carefully consider their options.