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.
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.
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.
Concern over the amount of cotton available outside of China continues to dominate trading.
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.
Twenty-one students from the United States and six other countries graduated from the Texas International Cotton School, held August 4-15 at Texas Tech University.
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.
The Cotton Board voted to recommend Cotton Incorporated’s proposed 2015 budget of $80 million to the Secretary of Agriculture.
The August USDA crop production and supply/demand numbers are best described as a mixed bag. Increases in U.S. exports and World Use are good news, as is the fact that ending stocks didn’t increase.
USDA’s World Agricultural Supply and Demand Estimates for August show forecasted increases in production, exports and ending stocks for U.S. cotton.