Interviews
Gains in cotton market
09 Jun '08
5 min read
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.
Growers in the southern part of the High Plains will reach their final planting date on Tueday, June 10 and conditions are as bad or worse there than they are west and southwest of Lubbock".
"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.
On the other point, the stock markets collapse and nosedive of the dollar on Friday simultaneous with an explosion of commodity prices was uncomfortably reminiscent of what we saw in the first quarter of the year, culminating in early March. The seriousness of the ramifications of the alarming explosion of energy, foodstuffs coupled with such significant and frightening equity losses could well hasten government intervention.
July options expire next Friday. There are 11 sessions for traders to square July positions prior to delivery on June 24th. Not coincidentally, that date also coincides with what has proven to be a seasonal selling opportunity in each of the last 15 years with the exception of 2000. (1999/2000 crop year)
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.
Growers in the southern part of the High Plains will reach their final planting date on Tueday, June 10 and conditions are as bad or worse there than they are west and southwest of Lubbock".
"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.
On the other point, the stock markets collapse and nosedive of the dollar on Friday simultaneous with an explosion of commodity prices was uncomfortably reminiscent of what we saw in the first quarter of the year, culminating in early March. The seriousness of the ramifications of the alarming explosion of energy, foodstuffs coupled with such significant and frightening equity losses could well hasten government intervention.
July options expire next Friday. There are 11 sessions for traders to square July positions prior to delivery on June 24th. Not coincidentally, that date also coincides with what has proven to be a seasonal selling opportunity in each of the last 15 years with the exception of 2000. (1999/2000 crop year)
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.
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