The dog days of summer have captured the market again-it is that time of the year. The market is somewhat motionless and is looking for direction. The end of the 2005-06 marketing year and the beginning of the 2006-07 marketing year has left the market in its typical stall.
Cotton Experts announces that with the exception of weekly U.S. exports and monthly domestic consumption reports, traditional fundamentals that can be quantified are hard to come by.
However, the market is entering a period where the seasonal price trend is higher. Remember, never bet against the seasonals. Never bet against the seasonals!
Too, the weather woes that seemingly were discounted after USDA's August crop report suggested little to no change in world and U.S. production, are coming to life again. With the exception of the West, other regions of the U.S. appear to have suffered further crop deterioration.
Rain remains in the forecast for the Midsouth for the next five days as the water logged Louisiana, Mississippi and Arkansas crops want nothing but sunshine.
If that were not enough, the storm moving through Caribbean is expected to move into the Gulf of Mexico on Tuesday, the first anniversary of the deadly Katrina.
Cotlook lowered its estimate this week of the Pakistan crop 600,000 bales below that of the USDA August report. Too, many private sources have lowered the Pakistani crop even more, between 750,000 and 1.0 million bales.
marketing@alchempro.com
