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eCOOPNEWS Volume 7 Number 35


Commodity Comment
Cotton prices continued sideways this week staying mostly between 59-61 Mar.  The LDP did go down slightly today for the upcoming week dropping from 5.91 cents/lb last week to 5.64 cents/lb this week.  If prices continue next week sideways to slightly higher we could see the LDP drop a little more.  There seems to be good grower selling above the market with good mill buying below the market and specs generally uninterested in pushing it either way.  Many spec funds are stuck in yearend mode and not wanting to commit to a position in either direction until next year in order to protect their gains for 2014.  We could see some index fund selling at the end of this year or early next year as passive investors in commodity index funds are looking at losses for the year due to the sharp decline in energy prices.  Many of these index funds are heavily weighted in oil and natural gas, both of which are down over 30% for the year.  Fundamentally, there is not a lot of news in cotton.  Harvest is pretty much done, so there isn’t much left to impact production and attention is turning to demand and cotton flow.  We do get a supply demand report next Wed which will likely see a slight increase in US production and possibly some reduction in Chinese ending stocks.  For the week Mar cotton closed at 59.64 down 44 pts.
Bean futures were all over the place this week being down sharply early in the week but rallying hard today to finish the week positive.  Good demand has been noted this week but grower selling is right there to meet any rallies over $10.50 Jan. The overall trend in beans for the last month has been lower highs and lower lows as more and more beans make their way to end users. Jan beans closed today at $10.36 up 20 cents for the week. Corn futures didn’t do much this week and Mar corn continues to consolidate between $3.75-$4.00.  Next week’s supply demand report could move it out of that range if USDA adjusts production any.  Mar corn finished today at $3.95 up 7 cents for the week.  New crop wheat saw some sharp gains Monday led by possible supply disruption in Ukraine and Russia.  Later in the week the market sold off as much of the US plains saw some beneficial rains fall that could give the recently planted winter wheat crop some much needed moisture as it heads into dormancy for the winter.  Jul 15 wheat closed at $6.02 up 13 cents for the week. 
                                                                Wayne Boseman
                                                                VP Brokerage


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