Home / Knowledge / News / Textiles / Bearish USDA WASDE report pulls down NY cotton futures
Bearish USDA WASDE report pulls down NY cotton futures
12
Jul '14
The NY cotton futures market was down 394 points for the week from Monday’s 72.06 open to Friday’s settle at 68.12. Without a doubt the USDA WASDE report was bearish and the market took a quick dive once the report was released.

They finally made a sizeable adjustment to their numbers, something the USDA is not known to do, which better reflect the current situation in the U.S. Their current production number is 16.5 million bales for the U.S. crop, up from 15 million, and an ending stock of 5.2 million, the largest since 2008/09 if that number is reached. Their rest of the world ending stocks number was also up by 2 million bales.

With this news coupled with the fact that the market blew through the “resistance” at 68.25, producers are looking at prices close to production costs in some cases. The next level of support is around 66.00. More than likely, most farmers will not sell but use the loan to buy more time and hope for a better price.

However, at 52.00, could it make sense to sell now and buy some calls to take advantage of any market upside? Seems reasonable but that is not an easy decision for the farmer. In the U.S. they have access to all the potential subsidies, adjusted world price (AWP)/NY market spreads, etc. that could impact their final payments. Producers in other countries may need to think hard about the sell now buy calls, but they better think quickly.

ECom USA

Must ReadView All

Apparel/Garments | On 24th Feb 2017

Q4FY17 EPS dips 11% at apparel retailer Macy’s

For the thirteen weeks period ended January 28, 2017, earning per...

Textiles | On 24th Feb 2017

Net income slips at Westlake Chemicals in Q4

For the three months ended December 31, 2016, net income at US...

Apparel/Garments | On 23rd Feb 2017

NAFTA renegotiation puts Mexico-US jeans trade at risk

The almost imminent renegotiation of the North America Free Trade...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search