The August USDA supply demand report was very bullish for cotton. Dr. O.A. Cleveland says the market is now positioned to ensure strong cotton plantings for at least 2023 and 2024.
The supply side of the market is the force for higher prices, while demand has stabilized for now.
The cotton market has truly hit the “summer doldrums.” But marketing fundamentals, particularly on the supply side, are building an argument for trading to the 108-110-cent level.