AgFax - AgFax Cotton: Doane

AgFax Cotton: Doane
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Daily Commentary -- Sept 1

Cotton futures settled higher on Wednesday. December added 121 points to close at 87.41 cents and March was up 80 points finishing at 85.54 cents. Prices climbed solidly higher today, supported by fund buying on news of better-than-expected U.S. manufacturing data. Also boosting prices is the threat of Hurricane Earl to the North Carolina crop, which is well ahead of normal with 43% of its bolls open compared to the five-year average of 15%. USDA's August Crop Production report estimated the North Carolina crop at 890,000 bales, nearly 5% of the U.S. crop. Most of North Carolina's crop is grown in the northeast corner of the state, which is expected to get heavy rain and wind (at the least) from Hurricane Earl. India is still defining the rules for its cotton exports, but it currently sounds like the amount of cotton available for export will be limited based on domestic needs. That should add support to the currently high U.S. prices.

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