|
January 24, 2006
I know I just keep hammering away on
this but I am trying to get as many of you in Cotton as
possible....BEFORE it leaps out of here. Obviously, this is just
my opinion but the combination of the chart look and the way
fundamentals are developing continues to have me believing a big
bull move is in the works...and that what has recently been a
quiet 7 week upswing is about to shift into a higher gear.
Demand:
The United States is responsible for about 1/3
of the world's export market in Cotton. This season's
exports are currently running at a record pace, inclusive of
December's monthly export sales number being 6 times that of a
year ago, much of that demand coming from China.
Supply:
Texas is our largest Cotton producing state accounting
for about 35% of this year's harvest.
The majority of Texas' cotton is grown in West Texas where they
have just entered their record 88th day without measurable
rainfall. This drought surpasses the
previous record of 85 days set in 1922....As a
consequence, subsoil moisture in West Texas is virtually
nil. During the next 30-45 day, if no rainfall occurs, or only
in negligible amounts, , there is a lot of acreage that simply
will not be planted. To say the least, this would have a major
impact on cotton prices.
I still see July trading
at least into the mid 70's.
Give me a call if interested...
Bill Rhyne
800-578-1001
770-514-1993
|
|