Cotton Experts presents Cotton Futures drifted this week as the market continued to account for last week's USDA announcement that the 2006 U.S. crop size was little changed from its July estimate.
Private and industry second guessing the United States Department of Agriculture (USDA) report was a bit broader than usual. The late July and early August heat, coupled with drought conditions across major regions of the cotton belt, keeps alive the discussion that the U.S. crop will be no more than 19 million bales on the high side and possibly 18.5 million bales or below.
Yet, until the crop becomes more defined and the certificated stocks issue, i.e., the large volume of discounted cotton that continues to gain certification, New York futures will continue to be constrained above 57 cents.
Cotton Experts announces that the speakers at the China Cotton & Textile Forum hammered to a totally home audience that cotton quality was, and would continue to be, the make or break factor facing a Chinese cotton textile operation.
Mill owners noted that while they buy various world growths, they continued an active program to test their output in search of finding various cotton growths and mixes that meet their standards, standards that are generally higher than those of U.S. textile mills.
They also addressed the point of finding a guaranteed supply of high quality U.S. cotton.
marketing@alchempro.com
