By admin       2018-09-20

The big question becomes where do things go from here? Fortunately, coops and most individuals were given ample opportunity earlier to price some cotton in the 80s. However, poised to have an above-average crop, a sizeable volume has yet to be priced and is now subject to the vagaries of an unstable market. As tempting as it is to do something, consider patience a virtue for now. Markets are prone to knee jerk reactions on the news of the day. At some point fundamentals will rule, but how long this will take and how much blood will be let in the process. When looking to price cotton, I strongly encourage everyone to consider the Market Facilitation Program payment(s) as an additional positive basis since it applies to every pound produced, not a percentage of APH. Program provisions guarantee six cents on half your actual production, which equates to a guaranteed three cents across all production with the hopes of more in December. Therefore, when selling on recaps at harvest or pricing remaining on call bales from a contract consider this as an additional 300 points on to the merchant’s basis. If Choice Cotton can be of any assistance with your cotton marketing efforts this Fall, please contact us at 334-365-3369. Until next time, wishing everyone a safe and bountiful harvest.

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