USA: Gains in Cotton Market
Cotton prices had worked their way lower for nine consecutive sessions for a total loss of over 800 points before bottoming the early part of the week. Prices had just sagged under their own weight from speculative liquidation as well as option related hedging pressure from merchants. The pressure came despite…
Egytex News Desk
Egytex
On the first point, without a doubt, acreage was lost in West Texas. Assessment however, will take several days. Extracting quotes from Plains Cotton Growers weekly communique, "With two-thirds of the area now past its federal crop insurance final planting date it is highly unlikely that any of the acres lost or destroyed from this point forward will be in a position to even consider being replanted."In a summary of the current situation that appeared in this week's FOCUS on South Plains Agriculture newsletter, Texas Agrilife Extension Service Cotton Specialist Dr. Randy Boman noted, "Due to the continued loss of soil moisture in the upper profile and an unfavorable near-term forecast, the current situation makes it not practical to replant damaged or destroyed stands."Additionally, export business picked up sharply the last two weeks but it is not clear yet as to whether Fridays rally left the demand behind or whether bids are edging up beneath the market.Tuesdays USDA report will give a first look at USDA's country-by-country run down of foreign production and consumption. Also traders are anticipating a sizable cut in exports for this year which will flow through directly to ending stocks. Then on Thursday morning the Ag Market Network's monthly conference call for producers is scheduled. The conference call can be heard live at 7:30 am (CDT) at Agmarketnetwork.net or as a replay later in the day.Source: Swiss Financial Services
From the Egytex news archive, first published on 9 June 2008. Figures and names are as reported at the time.
