Interviews
Cotton futures fall off cliff by testing new lows
13 Oct '08
4 min read
The Ag Market Network's monthly conference call is scheduled for Tuesday morning at 7:30 am and can be heard live on the internet at agmarketnetwork.net. Replays are available on the internet by about noon.
This month's call will feature an explanation of the intricacies of the A.C.R.E. program by Dr John Robinson – what it is and what it means for producers. The Average Crop Revenue Election (ACRE) is slightly different from previous farm programs and focuses on farm revenue instead of just prices but it is complicated. hen Dr. Carl Anderson and I will analyze the October USDA supply/demand report and try and interpret the technical ramifications of the recent market break in prices.
Since all the markets are interconnected in on way or another via world economies and held hostage to the liquidation and rush to liquidity by index funds, ETF's and other commodity investors, confidence is low in trying to single out cotton for chart points or put much faith in seasonal work.
To my way of thinking, there are no true support areas on the cotton charts; only downside targets. However, there were late spring - early summer lows of 4905 and 4963 in 2007 that would make the current area logical, if such a word exists in today's environment, for the bulls to dig in. Below that level, the next target for December cotton would be close to 46 cents.
In Sunday evening trading (about 9 pm), the dollar was sharply lower, Dow futures were up about 175, gold up $12, oil up $2.75.
This month's call will feature an explanation of the intricacies of the A.C.R.E. program by Dr John Robinson – what it is and what it means for producers. The Average Crop Revenue Election (ACRE) is slightly different from previous farm programs and focuses on farm revenue instead of just prices but it is complicated. hen Dr. Carl Anderson and I will analyze the October USDA supply/demand report and try and interpret the technical ramifications of the recent market break in prices.
Since all the markets are interconnected in on way or another via world economies and held hostage to the liquidation and rush to liquidity by index funds, ETF's and other commodity investors, confidence is low in trying to single out cotton for chart points or put much faith in seasonal work.
To my way of thinking, there are no true support areas on the cotton charts; only downside targets. However, there were late spring - early summer lows of 4905 and 4963 in 2007 that would make the current area logical, if such a word exists in today's environment, for the bulls to dig in. Below that level, the next target for December cotton would be close to 46 cents.
In Sunday evening trading (about 9 pm), the dollar was sharply lower, Dow futures were up about 175, gold up $12, oil up $2.75.
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