Cotton continues to trend upward with both old crop (May13) and new crop (Dec13) nearing the 85-cent mark.

The uptrend is starting to show a little “nervousness” taking on a little more sideways look. But it seems the bulls had 85 cents in their eyes and now we’re essentially there. I wouldn’t consider the uptrend “broken” until we close down below about 83 cents.

May13 is traded at just under 84 cents Feb. 22 and up slightly from Feb. 21. May13 closed at 84.46 on Feb. 20 — the highest daily close in 9 months. May has been in mostly the 83 to 84 cent range now for 3 weeks.

For spot market (recap) sales, the basis is currently -135 May for 31-3/35 and -400 May for 41-4/34.

You can check current commodity prices now.

Dec13 is also traded at just under 84 cents Feb. 22 and also set a new near-term high close on Feb. 20 at 84.27 cents. Dec13 has increased about a penny over the past 2 weeks — again it’s starting to look and feel like a bit of a slowdown.

Most contracts in the Southeast (or at least here in Georgia) will be -200 Dec13 so this represents ample opportunity to lock in 80 cents or even better on whatever portion of this years’ expected production you care to.

It really doesn’t matter which side of the fence you’re on (whether you think prices will move even higher or move lower), this uptrend is most likely too good to turn down if you’ve still got old crop to sell or are looking to book some of your expected new crop.

No one knows where prices will go. But, with Dec13 now standing at near the 85-cent mark, I think risk to the downside is a little greater than potential to the upside right now