Bacon County Ag Update

Cotton Market News

Excerpt from Cotton Market News July 13, 2015 version

If cotton prices were a tractor or other piece of heavy farm machinery, we would already have a serious soil compaction problem—tracking over the same ground time after time after time. Like tillage, the market recently attempted to break the compaction but, unfortunately, failed at the task.

Dec15 futures “broke out” to the 68-cent level back on June 30th but have since retreated back to their previous old 62 to 67-cent range. If it’s any consolation, prices still seem to be exhibiting the pattern of “higher trending lows”—but this may be a rather fragile support. More importantly, the failure of the market to hold the 68-cent level is concerning since producers are waiting on a shot at 70 cents or better. Likely, prices are now even more firmly entrenched in a tighter band of mostly 64 to 67 cents. Prices will still move on US crop conditions and production estimates, export reports, and news of sales from China’s stockpile.

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