February 12, 2013
USDA offered a friendly cotton report on Feb. 8 that saw U.S. exports increased 300,000 bales and ending stocks cut 300,000 bales to 4.5 million bales.
The projected price for the 2012/13 marketing year is expected to range from 69 to 73 cents per pound, increased 3 cents on the bottom and 2 cents on the top.
Global stocks were projected to increase 140,000 bales to 81.86 million bales.
China holds 52 percent of the world stocks, but the quality of their cotton is uncertain. Keep in contact with your cotton buyer on current quotes.
May cotton closed at 83.30 cents/pound, up 0.02 cents Feb. 11.
You can check current commodity prices now.
I would be 75 percent priced on 2012 cotton, targeting the 85–87 cent range to price the remainder of the crop.
Don’t let storage cost continue to eat into your value.
Over the past 31 years the average difference between the February projection for U.S. ending stocks and the final estimate has been 0.7 million bales with 10 years below the final estimate and 21 years above.
These numbers can and will change, but do reflect the best information and estimates at the time of the report.
The next USDA Supply & Demand report will be released March 8, 2013.
You May Also Like