December Cotton settled markedly higher Friday, primarily on the devastation of Hurricane Michael to the southern crop. The tweets and pictures being circulating on social media paint a dire picture, and that’s an understatement. We compared old black-and-white pictures of Hiroshima, Japan, to the Gulf coast and the resemblance is frighteningly close.
Further inland, the Alabama/Georgia cotton loss is measured in terms of tears. Losses may exceed 750,000 bales, or greater.
Now, a new storm, Sergio, is moving across Mexico heading to the lower side of West Texas. Not to sound flippant, but “when it rains it pours”.
In other news, Turkey released an American pastor held in prison for two years. The act was thought to be a thawing of the relations between the U.S. and Turkey. Such might mean a wider door for U.S. cotton exports to Turkish mills.
Volume Friday was an estimated 31,200 contracts trade. For the week, December cotton finished some 227 points higher, with most of that increase coming on Friday. Next week, there are to be even more horror stories to emerge as to personal and commercial destruction. Weather experts are doing analysis of recorded data which may show at the last literal moment Michael was a Cat-5 hurricane.
USDA did report better sales than those of one week ago on Friday. However, China was a noted canceler of 75,000 bales. New crop sales (2019-20) did show China as the primary buyer. That action is probably some sort of futuristic hedge in case an eventual settlement of the U.S./China trade war happens.
December cotton settled 7837, up 156, March was 7955, up 138, ad Red December was 7699, up 79.