February 4, 2013
With the Chinese government sitting on a huge chunk of the current world cotton supply and an outlook for sharp acreage cutbacks in the U.S. this year, support should continue for prices in the 80-cent range, says O.A. Cleveland, Jr.
O.A. CLEVELAND, JR.
“We’re in an exciting cotton market now,” he said at the Mississippi Farm Bureau Federation’s annual commodity conference at Jackson, Miss.
“It’s not the $1.50 to $2.00 excitement we saw in 2010, but it is impressive from the standpoint that many analysts and market experts have been suggesting prices in the 45 cents to 60 cents range. Even the International Cotton Advisory Committee, one of the very best analytical organizations, has suggested we’d be seeing a price somewhere between 65 cents and 75 cents.