Agfax Buzz:
    June 19, 2014

    Doane Cotton Close: Old Crop Rally Gets Hammered

    AgFax.Com - Your Online Ag News Source

    The Doane Cotton Commentary - Leading in Agricultural Analysis Over 70 Years - Copyright

    The big sudden rebound in old crop cotton had gone six straight trading sessions until yesterday’s break and it got hammered today. Until yesterday, new crop futures had been reluctant to follow the rally in old crop and the July-Dec spread had approached 15 cents until finally starting to close a bit yesterday and significantly today.

    Unwinding of long July/short December spreads is surely a factor as well. If spread-unwinding is the best thing bulls can cling to for new crop, it’s gonna prove temporary at best and I suspect another selling opportunity.




    If December futures can hit 79 again, cash marketers should take sales to 45% and Futures and options users hedge another 15%, to 65% priced. I totally concur with cotton guru Dr Carl Anderson who told followers yesterday that we could be looking at a 16.5 million bale crop vs USDA’s June WASDE call for 15.0 million bales in a year.

    The only bright spot in that event is Anderson’s observation that U.S. export potential probably exceeds USDA’s current forecast because the gap between foreign production and foreign use is 7.7 million bales, the biggest deficit in three years.


    Tags: , , , , ,

    Copyright , Doane Advisory Services

    >

    Agfax Cotton News

    Louisiana: Rice Harvest Wraps Up, Early Soybeans Underway – USDA9-22

    Mississippi: MSU Researchers Study Soil-Testing Procedures9-22

    DTN Cotton Open: Falls to Steep Losses on Hefty Volume9-22

    Tennessee Cotton: Defoliation Strip Trials9-22

    Flint on Crops: Wheat Deserves More Attention9-22

    Keith Good: Ethanol Industry Enjoys Big Year, but Uncertainties Linger9-22

    Rose on Cotton: Bears in the Woods; World Production Could Climb9-19

    Georgia Cotton: Wet Weather Causing Boll Rot, Hard Lock9-19

    Georgia: Rains Falling at the Wrong Times9-19

    Georgia Cotton: Decisions for Defoliation Timing9-19

    Cotton Harvest – Midsouth – Picking, Cotton Defoliation Gear Up – AgFax9-19

    Cleveland on Cotton: Market is Dog Paddling; China Offers a Bone9-19

    Doane Cotton Close: Bearish Chinese Sentiments Weigh on Futures9-19

    AFB Cotton Close: Dec. Violate Trendline Support9-19

    DTN Cotton Close: Gives Back Last Week’s Gains9-19

    Louisiana: Diagnosing Nematode Damage9-19

    Cotton Harvest – Southeast – Pickers Running – AgFax9-19

    Texas: Farm Bill Education Program Slated Oct. 1 at Frost9-19

    DTN Cotton Open: Falls in Brisk Early Dealings9-19

    California Cotton Defoliation – Gearing Up Early – AgFax9-19

    Keith Good: Soybean Futures Hit 4-Year Low; Wheat, Corn Tumble, Too9-19

    Doane Cotton Close: Traders Develop Jekyll and Hide Psychology9-18

    AFB Cotton Close: Dec. Posts Losses but Maintains Support9-18

    Tennessee: Cotton Yield Monitoring with the Case-IH and Deere Pickers9-18

    DTN Cotton Close: Slips to 8 Session Low9-18

    Most Farmers Willing to Take More Steps to Improve Water Quality, Says Study9-18

    U.S. Drought Outlook: Improvements in Texas, Southwest9-18

    DTN Cotton Open: Remains in Red after Sales Data9-18

    U.S. Energy: Shale-Focused Companies’ Financial Performance Improves9-18

    Gasoline Prices: Average Falls 5 Cents9-18

    Propane Stocks: Rise by 1.4M Barrels9-18

    Diesel Prices: Decrease by a Penny9-18

    Keith Good: USDA Approves Use of Dow’s New GMO Corn, Soybeans9-18

    California Cotton Defoliation: Dealing With Whitefly And Variability In 20149-17

    DTN Cotton Close: Ekes Out Marginal Dec. Gains9-17

    California: 42 Counties Designated Natural Disaster Areas9-17

    DTN Fertilizer Trends: Rabobank Forecasts Higher 3Q Retail Prices9-17

    Cotton in Southwest: Need More Heat; 4-Bale Dryland; Pigweed Plans – AgFax9-17

    DTN Cotton Open: Futures Inch Slightly Higher9-17