Cotton closes higher, market rife with cut in US yield
13 Jul '07
3 min read
The market continues to disregard fundamentals and is putting more focus on the grain markets which will not even be a factor until the spring 2008. Soybeans were up close to the limit today and will continue to play a factor in the near term prices for cotton.
As of today, Soybean ending stocks are estimated to fall almost 20% next season and prices have rallied 40% so far this year. Cotton is currently estimated to reduce ending stocks by 10% next season and prices are up 30% so far. Another flag is forming and will have to see which way it breaks.
marketing@alchempro.com
