Cotton report supports prices Jan 11, 2013
Cotton futures gained 120 points early this morning, then sold off after the USDA report was released.
Then, futures turned higher again and are trading 60 points higher this morning in March. The report was friendly to US figures. They reduced the US crop by 250,000 bales, increased exports by 400,000 bales and reduced ending stocks by 600,000 bales.
However, the world figures were decidedly bearish. USDA raised beginning stocks by 600,000 bales, increased world production 1.73 million bales, reduced world use by 420,000 bales and this raised world ending stocks by 2.08 million bales.
It is clear that the US is enjoying good export sales, but those bales are simply going into foreign warehouses instead of going into mills to be used. Eventually, cotton prices should be forced lower throughout the world.
The US Dollar Index is trading 25 lower at 79.57.
Crude oil is down 56 cents at $93.26.
March soybeans are down 12 cents at $13.67 ¼. The soybean report was supportive for the US but bearish for the world, largely on bigger crops in Brazil and Argentina.
March corn is up 15 ¼ cents at $7.14. The corn report was friendly to US figures and neutral to world figures.
March wheat is up 15 ¾ cents at $7.76. The Wheat report was friendly.
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