Cotton Prices Push Higher, A Bigger Crop Could Bring Them Down

After challenging contract price highs during the week, a combination of overbought conditions, coupled with more showers across Texas and the Southwest, trumped the market’s push to higher ground and forced all contracts except July and October below the 90 cent level. Nevertheless, the price uptrend remains in place.  However, the market is inspecting the lower end of the price range as opposed to the upper end and is working the 88 to 95 cent trading range.  Thus, the bottom e...
Read More

Lower Stocks Drive Cotton Prices Higher

The juice continued to flow into the cotton market as new contract highs and new high closes were made during the week.  Too, it was very satisfying to the bulls as the week ended with the market holding its strength.    Most are beginning to realize that world stocks are not at the levels presumed, as well as the fact that U.S. ending stocks will be much lower, likely some 800,000 to 1.1 million bales lower than USDA estimated.  U.S. export sales have slowed as the 90 c...
Read More

Mills Scramble to Buy Cotton Fearing Higher Prices

Fittingly the circus midway has come to the cotton market, “round and round and round she goes, where she stops no one knows.”   It’s a catchy theme and one that is catching more than a few textile mills as they scramble to buy into the market to complete their pricing, i.e., price fixations on the July contract.  The world cotton surplus has been resolved and once again the market is at the whims of Mother Nature.  She is holding all the new crop cards.&nbs...
Read More

Declining Cotton Stockes Drive Prices Higher

Cotton bulls are roaming the globe as Chinese, Indian and U.S. cotton stocks continue to decline.   With stocks falling in the three major producing countries, world stocks are working their way down to 87 million bales, some 1.2 million below the current USDA estimate.  Too, with the USDA world stocks estimate some seven million bales overstated, prices were initially slow to move higher until the past month when virtually every analyst and the principal cotton agencies in other ...
Read More

Bull Market Pushes Cotton Prices Higher

Cotton prices took a ride on the bullet train this week as new crop futures made life of contract highs in all active months.  Granted, most are focused on the 2018 crop as would be expected. However, the 2019 December contract traded above 77 cents.  Don’t you want just a 5% or 10% slice of that pie?  Think about it and then do it.  The 2018 crop price ride is not done yet, but this may be time for a slight pause.  Supply fundamentals are now bullish so the price ...
Read More

Cotton Prices Dip, Despite Strong Exports

The cotton market had a rough and tumble week as a seemingly bullish supply demand report turned sour.  Prices dipped on the week in spite of increased exports forecast by USDA as well as a lower carryover.  However, it was healthy that the market was able to reverse its downward slide and settle the week on a positive note.  The old crop July contract is expected to become volatile with just 29 more trading days before first notice day.  The likely range is from a low of 79 ...
Read More

Cotton Prices Continue to Push Higher

Prices held at the upper end of the trading range most of the week and for the first time in several weeks the market traded a very narrow range.  The lack of volatility could suggest the old bull is tiring, but then, a new bull may be emerging.  Certainly the extreme drought in the Southwest continues to feed bullish hopes, but another full month of dry weather will be necessary before anything can be written off.  Yes, there are legitimate and grave concerns, but rains by the fi...
Read More

Both High and Low Grades See Strong Demand

Cotton prices continue to follow the surge in exports that is being driven by worldwide demand for cotton and particularly the strong demand for U.S. cotton.  U.S. high grades have effectively been sold out as evidenced by the small level of certificated stocks and the emergence of a very strong taker of delivery notices issued on May contract.  Export demand is further boosted by the abundant supply of U.S. low grades comprised of low micronaire and barky cotton.  The demand for ...
Read More

Cotton Prices Stable, Demand Increases

Cotton trading turned a bit puny all week as the May futures contract moved closer to expiry and the July contract prepared to become the spot month.   Open interest in the May contract has quietly dissipated.  Thus, any expected fireworks on the May contract have been all but abated and the expiry will be silent.  Delivery notices can be issued at the conclusion of trading on Monday, April 23.   However, the July contract remains supported by the bullish on-call sa...
Read More

Growing Demand Moves Cotton Prices Above 78 cts

Cotton posted gains on the week as the old crop May and July futures contracts traded within the 82.5-84.5 cent range and closed above 83 cents.   May was impressive as it moved through the fund long roll positions (sell May/buy July) and posted gains despite the selling pressure created by rolling positions to the July contract.  In fact, the May contract is suggesting that the market is facing a price inversion (the nearby contract is higher than the next contract).  Mill d...
Read More
Page 1 of 6 FirstPrevious [1]2345 Last