Market Analysis Stories

Market Analysis

Market Struggles with Black Swans and Bears

January 26, 2015

Although the bears have finally pulled prices into the 50s, the ability of old crop cotton to hold near the 60 cent level is phenomenal, given the current “Black Swan” financial market.

Market Analysis

Plexus: Get Ready for a Few Weeks of Volatility

January 23, 2015

While the market situation for U.S. cotton may seem friendly, it is being overshadowed by the negative outlook for commodities stemming from a strong dollar, lower economic growth and fears of another financial meltdown.

OA Cleveland
Market Analysis

Bears Are Growling, but Market Holds Firm

January 19, 2015

The fifty-centers are still out there and are beginning to beat their drums louder and louder, but the current trading range has proven to be most resilient.

Market Analysis

Plexus: Price Reacting to Non-Cotton Issues

January 16, 2015

Negative vibes from outside markets are overshadowing fairly constructive developments on the cotton front.

Market Analysis

Shurley on Cotton: Prices Just Treading Water

January 13, 2015

Recent activity has simply solidified the sideways pattern this market has been in for quite a while.

Cotton Holds Its Own Amid Call for Lower Prices

January 11, 2015

Despite spending the week in positive territory, the market was thinly traded, but closed slightly higher and withstood the increasing value of the U.S. dollar. That’s a win for cotton, as it held its own despite a widespread call for lower prices.

Plexus: Price Drop Pushes Market Back Into Sideways Mode

January 5, 2015

Recent price drops erased all gains from the previous nine sessions in one fell swoop, moving the market back into the 58-61 cents sideways range from which it tried to escape.

Shurley on Cotton: Looking Back and Looking Ahead

December 24, 2014

It’s not news that 2014 turned out to be a disappointing year for many growers. I’m somewhat optimistic on the price outlook for 2015, but I don’t see much reason to start contracting for anything yet.

Current Market Level Holding Its Ground

December 19, 2014

The market’s ability to hold its current level has overshadowed the fact that cash prices around the world have firmed a bit, signaling a stronger basis position for most growths.

Plexus: Slight Upward Bias in a Sideways Market

December 19, 2014

The market appears to be holding in a sideways to slightly higher range between 59 and 63 cents. But don’t rule out spikes to higher levels on spec short covering.

Market Bumps Up on News of Smaller U.S. Crop Numbers

December 15, 2014

USDA’s lower projections for U.S. cotton production should strengthen the current global demand shift in favor of U.S. cotton. The implication is a relative higher price.

Cotton Market is Ripe for a Rally

December 5, 2014

Current price consolidation activity has helped uncover excellent demand. A short covering rally could possibly be triggered sooner than later.

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Market Analysis

Market Lows Remain Higher, Even With Recent Price Dip

April 20, 2015

Cotton futures gave up three weeks of gains last week as the market lost some 200 points. Yet the market continues to see higher and higher lows, which generally points to an uptrend.

Market Analysis

Shurley on Cotton: Prices Heading Toward “Testing Ground”

April 10, 2015

Now that old crop has clearly broken through 65 cent ceiling, there is belief that prices will continue to trek higher toward a new “testing ground.”

Market Analysis

Tight Supplies of Quality Cotton Poised to Drive Market Higher

April 5, 2015

A very tight quality shortage that only gets tighter will drive cotton prices higher. This market has 70 cents, basis December, written all over it.

Market Analysis

Plexus: Factors Lining Up for Price Growth

April 3, 2015

Reduced global acreage, increased mill demand and low inventories of quality cotton could help push prices into the high 60s or even low 70s over the next few months.

Market Analysis

Shurley on Cotton: USDA Planting Intentions In; Time for Market to Focus on Other Realities

March 31, 2015

The March 31 USDA Prospective Plantings report of 9.55 million cotton acres is slightly higher than most other pre-report expectations. Now, it’s time for the market to focus on other matters.

Market Analysis

Cotton Prices Itching to Move Higher, as Growers Ponder Acreage Shifts

March 27, 2015

The market has shown it is comfortable with higher prices, as planting and production dynamics hold the potential for larger than expected U.S. cotton plantings.

Market Analysis

Cleveland: Market on Path to Higher and Higher Lows

March 20, 2015

Cotton prices bounced back in response to the time-honored adage, “low prices cure low prices.” But there are still a few bumps and curves along the way.

Market Analysis

Plexus: Market Bumps on Weaker Dollar and U.S. Supply Questions

March 20, 2015

While most commodity prices turned lower again, cotton rallied a bit, thanks to a constructive U.S. export sales report. But the big question going forward is how many tenderable grades are left in the U.S.?

Market Analysis

Shurley on Cotton: March Madness as Prices Tumble

March 16, 2015

Thus far, March has not been kind to the cotton market.

Market Analysis

Dull Trading Likely in a Stumbling, Mumbling Market

March 16, 2015

After losing its prior month gains in one week, the cotton market was left stumbling and mumbling. We are now likely in for a month – maybe two – of dull trading.

Market Analysis

Plexus: Is the Worst of the Selloff Behind Us?

March 13, 2015

The cotton market seems to be regaining its footing, and trade buying is starting to resurface. This leads us to believe that the worst of this selloff may be behind us.