Cotton Prices Get Pinched; Tariffs Are Blamed

B B King again sounds out, The Thrill is Gone. The November supply demand report shoveled out enough new information to send the market limit up.  Yet, two days after the report the market floundered and slid into the low 78 cent area, much like the response to a bearish report.  Such is the impact of the cotton tariff battle with China.  Raw cotton, that is “bales of cotton,” continue to get hammered via price while Chinese cotton textile goods, manufactured from non ...
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World Cotton Crop Declines, But Prices Remain Stable

Tariff concerns and traders' multiple views regarding the tariff continue to dominate cotton price direction, both up and down.  Meanwhile, world supply demand fundamentals appear to provide a firm price bracket for price movement.  The three plus cent trading range from 76 cents to 79.50 cents stills keeps prices restrained within that narrow range.  The world crop is slowly being down sized, but tariff related restrictions on demand have a firm chokehold on cotton&rsquo...
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Lower Stocks Support Cotton Prices

Cotton prices caught a break this week from what many called a neutral world supply demand report. The declining volume of world cotton stocks was the highlight of USDA’s October report and rode the wave nearly 200 points higher as it pressured the 79 cent level before settling the week at 78.37. Adding to bullishness of lower global stocks was the likely damage caused by Hurricane Michael’s destruction in southeast Alabama and some catastrophic destruction in big cotton plantings in...
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Cotton Prices Weaken, US-China Tariffs Blamed

There is a crisis in the Cotton Belt.  There is a crisis in the Heartland.  Agriculture is leading the charge to disaster.  Every morning begins with the chimes of two thoughts: I am wrong [about] trade and consequently I am wrong [about] the market.  We had considerable success earlier in the year and fixed the bulk of the crop between 80 and 94 cents, basis December.  Yet, I also felt that the December futures would rally and challenge 80 cents and above.  Too, I ...
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H.W. Textiles:  A Denim Leader Invests in Sustainability & Efficiency

H.W. Textiles: A Denim Leader Invests in Sustainability & Efficiency

The company is replacing all of the equipment at its mills starting from the fourth quarter of 2018. “We are not simply replacing a few parts, we are replacing the most of the machines,” said Mr. Tung. “The new machines will use less energy, less water, less chemicals and there will be less air pollution so it will be very good for the environment,” he added.
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Cotton Prices Slide, Despite Declining Stock Levels

Where is Billy Dunavant when we need him?  Cotton prices have taken nearly a ten cent nose dive, a 1000 points, in the past three months.  In the face of this, world ending stocks have decreased and world consumption has increased.  Too, expect stocks to further decline.  Yet, U.S. export sales have stumbled and record forward sales are history as new sales appear to be dying on the vine.  We can trace it back to the tariff.  Worse still it appears that December cou...
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Cotton Market Jittery Over US-China Trade Tensions

Tariff nervousness plagued the cotton market all week as December futures momentarily broke below long time support at 79 cents.  However, going into the weekly close, the market was trying to hold the price support line.  Prices are hovering around that level so all is not lost just yet.  I was one of those suggesting that the market would not suffer from the tariff as world cotton trade needs the U.S. crop that otherwise would have gone to China.  I was wrong.   F...
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Cotton Prices Continue to Amaze and Confuse

Cotton has become the contra-nowhere market...where she goes no one knows.  Yet, rest assured, the market is right.  It the market soothsayers like myself that are wrong.  The very narrow four cent trading range, 81-84 cents, basis December futures, remains in place.   It is teetering as if to be Humpty Dumpty.  The downside bias also remains in place.  The September supply demand report did little to spook the market lower, albeit was slightly bearish. &n...
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Uncertainty Drives Whipsaw Price Swings

Whipsaw price swings continue to haunt the cotton market.  Such price swings, characterized by triple digit day to day trading, will continue until the U.S. and world crop sizes are better defined.  Despite concerns surrounding the West Texas crop it is difficult to go against the USDA objective yield survey.  Until they change their estimate of crop size it is questionable to challenge the USDA-NASS survey results.  As we have mentioned in prior weeks, one should accept the ...
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Big Crops, Big Demand

Cotton added another muggy week to its trading linage, easily trading 100 points higher and then 100 points lower. As it cannot generate any clear direction.   Thus, the whipsaw price action continued and only the day traders seemed to care. The market is in search of new fundamental information with talk of crop size—some saw lower while others say higher, but with no one willing to stick their neck out with a firm commitment.  Too, the demand word has snuck back into the p...
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