Cotton futures are experiencing a technical rally as all 15 major producing states report a total of 40% of domestic cotton now planted. Cotton futures are up .015c today currently trading at .6249 cents per pound at the Intercontinental Exchange in New York.
Forty-percent planted is right on target for this time of year based on the previous five-year average, and the states leading the planting are Arizona (99% planted); California (82%); Arkansas & Louisiana (both 79%); and Missouri (71%). The states still behind the eight-ball are Kansas (6%); Texas (18%); Oklahoma (23%); North Carolina (36%); and Georgia (37%).
“The cotton planting is chugging along as farmers are reportedly asking the EPA to be more decisive with their requests for pesticides to help remove a major insect pest,” said Laura Taylor, a senior market strategist at RJO Futures in Chicago, sharing her fundamental assessment of the cotton futures market. Taylor added, “The farmers are trying to prevent losses estimated to be about $90 per acre without insect protection.”
Cotton futures trend has technically rolled over to “down” in my study just last week. This technical rally in cotton futures could possibly be sustained if the EPA stalls with an affirmative decision soon.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
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