The dog days of summer are gone with fall being the season for now, but cotton prices have continued to linger just above 53 cents for month after month.
Attempts to move above 57 cents have been clamped shut, but then, the market has also demonstrated support at 53 cents.
Within this four cent range the market will spent most of its time trading the narrower 54 to 56 cent range. My long awaited breakout above 57 cents appears doomed unless the world cotton crop falls below 114 million bales.
While the 53 cent price floor appears solid, the upside potential awaits any new developments in the September USDA supply demand report, scheduled for release this Tuesday. (Carl Anderson, Mike Stevens, John Robinson and I will discuss the report on the monthly AgriMarketing Teleconference call Thursday morning at 7:30 a.m. CDT.
The program is also live on KFLP 106.1 FM and 900 AM in West Texas. Additionally, it is broadcast live on the internet at www.KFLP.net Further, your county agent and county farm bureau office have access to a toll free 800 number.
Next week's report will speak mountains with respect to the market for the coming two months.
The size of the US crop, expected to drop as much as one million bales below the August estimate of 20.3 million bales, will be the key. Many areas in the Midsouth are picking less than had been expected as the drought left the plant will an abnormal number of light weight bolls. This problemis expected to be repeated in much of Texas, Georgia and Alabama.
marketing@alchempro.com
