AgFax Cotton Review: Potential Export Increase; First Bale of the Season
- Boyce Thompson reports for AgWeb.com that U.S. cotton exports could increase by as much as 240,000 bales, or a rise of 2%, due to an expansion of the Panama Canal that would allow larger vessels carrying more cargo which is expected to finish in April 2015. Currently cotton is shipped by rail to West Coast ports as it is more economical despite the large distances. With the Panama Canal expansion, shipping cotton from the East Coast to China will take several days longer but at substantially lower costs.
- Rizwan Bhatti reports for Pakistan’s Business Recorder that Pakistan’s raw cotton exports for July-May of fiscal year 2014 rose 39% due to lower prices and improved domestic production. Market value for cotton exports was $203.7 million compared to $146.7 million last year.
- The Valley Morning Star reports that the official first cotton bale of the season was delivered last Thursday, July 3, at 5:15 PM to the La Feria Co-Op gin the Lower Rio Grande Valley. Sam and Josh Ruiz of Mid Valley Ag. delivered the bale and will be awarded a $3000 reward by the Harlingen Cotton Committee which sponsors a yearly contest for the first bale of the season. Harlingen has auctioned the first cotton bale for the last 61 years, and verified every year that the winning bale was grown in the Rio Grande Valley.
- Vic Schoonover reports for the Atlus Times that Oklahoma’s cotton crop is mostly in good shape thanks to welcome and timely rains throughout June. Caddo County has planted 10,000 acres, 75% of which are irrigated though little irrigation has been needed so far this season. Growers and gins are both keeping their fingers crossed the rest of the season plays out as favorably so they can beat last year’s production levels.
- Darrin Dodds, Extension Cotton Specialist with Mississippi State University, reports on AgWeb.com that delayed weed control due to rains has resulted with larger, harder to control weeds in many cotton fields. Dodds offers several herbicide options for late season weed control based on what variety growers intend to to spray.
The bulls were again winners in an exciting week for longs and producers. In last week’s report, I said the markets bias would be near unchanged to a bit lower.