By admin       2018-10-15

Cotton prices caught a break this week from what many called a neutral world supply demand report. The declining volume of world cotton stocks was the highlight of USDA’s October report and rode the wave nearly 200 points higher as it pressured the 79-cent level before settling the week at 78.37. Adding to bullishness of lower global stocks was the likely damage caused by Hurricane Michael’s destruction in southeast Alabama and some catastrophic destruction in big cotton plantings in southwest Georgia where growers were on the verge of harvesting a bumper crop. Estimates of losses due to Michael were upwards to one million bales, but look for the number to be closer to 300,000 to 400,000 bales. That, in itself, would represent a disaster of gigantic proportions. Probably, but not confirmed, the market has found its bottom in the expected 74-75 cent area and is now back trying to break above 79.50 and await the birth of a new bull. Expect a few fighting days/weeks as the December contract attempts to move back into the low 80s.

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