December cotton futures trading around 65 cents

December cotton futures trading around 65 cents

The largest country of export buying United States grown cotton remains China. 
But in recent years China has slowed buying activity. 
Now Vietnam, Turkey and Indonesia are raising demand. 
The big question U.S. cotton producers and suppliers have: What does China plan to do with their cotton stockpile and how will it affect prices? 

"At this point in time, the December futures have been hanging right around 65, 65 and a half cents," Grady Martin said. "Towards the middle of harvest we're hoping that it will remain unchanged to higher. But depending on what China decides to do with their reserve stocks, you could see this market move lower."
 
Lubbock Cotton Exchange president Grady Martin said that the good news for our local producers is the potential for the dry land crop as well as reduced watering costs on irrigated fields. 

"65 cents is going to be pretty tough for some of our producers," Martin said. "Some of them, depending on their yields, will be able to make a little bit of a profit, maybe have a decent profit if they can get the yield to go along with it. But it's going to take some help from mother nature." 
  
Above average rainfall totals in the area have allowed some producers the first chance for a dry land crop in three years. 
The best thing for cotton development now would be plenty of sunshine and high temperatures. 

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