Cotton futures continue to tank from their earlier August high above .78c now that the news is out about West African cotton production to surge. Cotton futures are down .43 cents today currently trading at $0.6801 per pound for December delivery at New York’s Intercontinental Exchange.
Last week the USDA announced from their Dakar-bureau that West African cotton production – formerly damaged last growing season by weather – is prepared to bounce back. Cotton production in the growing regions for the 2016-17 season is believed to reach 24% more than production for last year’s season.
“The beginning of the 2016-17 cotton planting campaign started well with enough rains,” said an USDA official, from a bureau in West Africa, sharing their fundamental assessment of the cotton futures market. The USDA added, “In mid-July, 90 percent of the forecasted area had been sowed.”
Earlier this month cotton futures had been in a strong up-trend, but a week and a half ago it has rolled over to “down” as the trend remains. With news such as this coming out against cotton futures, it will take much to change the direction.
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