AFB Cotton Close: Taking A Shellacking
Cotton is taking a shellacking. Yesterdays limit decline appears to be just a prelude to what could happen. December futures closed just above 76 cents. World stocks grew in yesterdays report and with a 2012 crop that is expected to exceed use will move higher. USDA projected 2012/13 world stocks of 73.75 million bales. The cure for low prices is low prices. This should start cotton on the road to regaining lost market share.
|Spot Price, Grade 41 Staple 34:||Memphis down 285 at 7247|
|Greenwood down 285 at 7247|
|New York Futures:||July||down||285||at||7897|
|This week’s LDP rate for cotton is||0¢ cents|
|The estimate for next week is||0¢ cents|
The ICE Dec and Mar contracts gave back 160 and 87 points on the week, respectively, as last week’s inversion between the two contracts gave way to partial carry. Well,