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

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

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

news category


Related Categories:
June 2017

June 2017

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

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search