Cotton export from US continues to be unsatisfactory
26 Oct '06
2 min read
Cotton, with its higher input cost and risk of discounts versus sorghum, whose price reflects the drought feed market is a very topical choice growers are mulling over.
Cotton futures could well exhibit some strength by harvest time for next year. At current AWP/New York levels, post Step 2 export subsidies, futures have to be 5-6 usc higher than where they are for cotton to be profitably redeemed from the loan.
China will run out of Indian and domestic cotton and the US will have to be the number one supplier of cotton. This may make the long, hot, dry summer of irrigating worth something.
Dave Brophy - Cotton Trader for ECOM Commodities Pty Ltd.
marketing@alchempro.com
