joomla analytics
Back to CCGC Home  
Service with Integrity


eCOOPNEWS Volume 7 Number 34


Commodity Comment
Cotton prices were pretty flat this week with most of the market’s attention focused on spreading from Dec to Mar.  The March contract is now the most watched as December entered its delivery period today and with less than 1000 contracts left open.  As cotton prices have consolidated in the lower end of the recent range the LDP made a big jump.  Starting today the LDP is 5.88 cents/lb and the one day calculation for next week is projected to be 6.39 cents/lb.  Good demand has been noted around the 5900 Mar area this week and many traders are talking about the market being range bound in the short run with good mill buying between 56-59 and good grower selling in the 60-62 area.  Specs aren’t really motivated either way right now as they are basically flat and their attention is turned to other more volatile markets.  Harvest is starting to wind up in the southeast with NC at 77% harvested, SC 89%, GA 83% and VA 66%.  Most growers will be finishing up around Thanksgiving but it will be a while before the gins get caught up.  With harvest starting a little late this year and with very little weather interruption, gin yards and fields are full of modules that will most likely take until the end of the year before gins get caught up.  For the week Mar cotton closed at 5952 down only 28 pts for the week.

The transportation logjam that has helped rally corn and bean prices over the last few weeks finally appears to be breaking loose allowing more and more grain to get into the supply chain pipeline.  Midwest elevators are starting to get more and more rail cars in allowing them to start loading some of the grain that they have dumped on the ground over the last few weeks.  Corn and bean harvest is virtually finished with 89% of the US corn crop harvested and 94% of the US bean crop harvested.  Winter wheat planting is pretty much done as well with 95% of the US wheat crop in the ground.  US wheat acres are projected to be unchanged but Carolinas and Virginia acres are expected to be down about 5-10%.  Jul 15 wheat closed today at $5.66 down 9 cents, Dec 14 corn $3.72 down 9 cents and Jan 15 beans $10.39 up 17 cents. 
                                                                Wayne Boseman
                                                                VP Brokerage


Back to Headlines

Back to CCGC Home