Other than a mid-week rally attempt, cotton prices remained range-bound despite open interest swelling to new all-time record levels. The past several weeks cotton prices have been content to stay within a narrow range with each sessions general direction dictated by outside markets. In fact, going into to the November report, prices were basically very close to where they were a month earlier.
For the week, Dec which goes into delivery in just eight sessions, gained 33 points while March picked up only 19 points. Dec 08 lost 18 points for the period.
Initial market reaction to the monthly USDA report was bearish as the US crop now looks much larger than expected thanks to Texas' perfect weather, extended growing season. However, the market found the same support at 6400 that has been present the last three weeks and values bounced back to unchanged by the close.
After accounting for practically all the changes in last months WASDE report, most of the Chinese numbers were unchanged. However, USDA did cut the Chinese imports and consequently our exports a half million bales. So,as was the case last year,it looks like the US is once again moving into the roll of residual supplier as we lose market share of the Chinese business to India.
In other markets, gold gained another $26 last week after hitting a high of $847 just three dollars shy of the all-time high price hit on January 1980. It is hard to believe that it has just been since thefirst week of September that gold crossed $700. Since then, silver has gained $3.50, the CRB 5,300 points, soybeans $1.63 and corn 53 cents per bushel.
marketing@alchempro.com
