What is in this article?:
- Cotton prices remain steady
- Timely rain improves crop
December cotton prices hang tight at a good 85-cent range.
The main worry now is making the crop to assure delivery on contracts.
Cotton prices continue to hold around the 85-cent mark. A good goal this year was to sell as much cotton as possible first at 80 cents or better then at 85 cents or better. If you’ve followed that philosophy, you should be sitting pretty good right now.
Cotton prices (Dec13 futures) continue to perform quite well under the circumstances and appear to be well-supported at this time. Dec’13 is currently around the 85-cent level and still in a decent uptrend since the most recent drop to around 83 cents. There appears to be solid chart support at that 82 to 83-cent area with what should be another level of support at 80 to 81.
All that to say this: I believe the goal starting out this year was to sell as much cotton as possible first at 80 cents or better then at 85 or better. If you’ve followed that philosophy, you should be sitting pretty good right now with a fairly modest portion of the crop already priced. The main worry right now is making the crop to assure delivery against the contracts.
As we move into harvest season, there can be a tendency for prices to decline. This can happen if the US and World crop comes in bigger than expected and/or if buying (exports) dry up. This market (Dec13) has tried to break below the 82- to 83-cent level several times since April. Thus far it hasn’t been able to do so due to new buying at that level and bullish technical/speculative interest (buying) at that level.