The curse of a market with poor demand – the crop has gone to the dickens across much of the Cotton Belt, and prices are following.
A reduced U.S. cotton crop might prove to be a little bullish, but supply side factors may continue to keep prices in check.
USDA’s August estimate of 14.0 million bales was 2.5 million bales lower than the July estimate. The market immediately responded with a move to 87-88 cents – the very top of the nine-month trading range.