Concern over the amount of cotton available outside of China continues to dominate trading.
According to the USDA’s August Cotton and Wool Outlook report, global cotton stocks will reach a record 105.1 million bales for 2014/15.
USDA’s World Agricultural Supply and Demand Estimates for August show forecasted increases in production, exports and ending stocks for U.S. cotton.
Cotton growers have from August 11 until October 7 to enroll for the Cotton Transition Assistance Program, an interim payment program created by the 2014 Farm Bill.
With the prices for cotton and polyester converging on the world market, the International Cotton Advisory Committee expects world consumption of cotton to increase five percent to 24.5 million tons in 2014/15.
Market technicals suggest the 60 to 62 cent level will hold for prices in the very short run – depending, in large part, on weather patterns for Texas and India.
USDA has implemented the new Supplemental Coverage Option – one of the provisions of the 2014 Farm Bill – to help strengthen and expand crop insurance options for farmers and ranchers.
The USDA Crop Progress report for July 27 shows squaring and boll set numbers on target with the five-year averages, and overall crop condition well above the same week last year.
Over the past two weeks, prices for Dec14 futures have continued to slide, but tried to stabilize in the 67 to 68.5 cents range. In an extended narrow trading range like this, there is usually not much pressure/interest to push prices either direction on current news. Until July 24, it seems.
According to the July 20 USDA Crop Progress report, squaring and boll set numbers are now above the five-year averages for the date, and overall crop condition remains unchanged in the past week.