Top Commodities - Cotton prices prediction september 2015 : Cotton prices moved higher Thursday in the wake of the government's slashed outlook for the U.S. cotton crop, surprising investors who'd anticipated a bumper crop and ideal growing conditions.
Cotton futures for December jumped 1.7% to close at 65.79 cents a pound, the highest since July 14, extending Wednesday's gains.
The U.S. Department of Agriculture's estimate of cotton stockpiles and production for the 2015-16 marketing year shrank in August, below both its July forecast and the expectations of analysts who were expecting them to grow considerably. The agency said its estimates were the first for the season that are based on surveys at the field level. The agency said it saw lower planted area, higher abandonment and a lower average yield than it anticipated last month before the field survey.
A large swath of this year's crop in Texas, the largest cotton grower in the U.S., got off to a late start because of record rains in May that delayed planting but reports out of Texas have pointed to ideal growing conditions since then.
"We were a bit surprised by the report as well," said Steve Verett, executive vice president at Plains Cotton Growers in Lubbock, Texas, which represents about 60% of cotton grown in the state.
Mr. Verett said the organization had anticipated fewer acres planted but was surprised by USDA's estimate that farmer abandonment of cotton acres would be on par with historical averages.
"If I have an argument with the numbers for our area, it's in that abandonment figure," he said. "I think we're under historical abandonment. This crop has done very well, our crop was planted a little bit of late so we had to do some catch-up and July allowed us to do that."
In its July report, which is based on historical averages, interviews and weather trends, the USDA thought the southwest region, which includes Texas, would see an abandonment rate of 7.5% for upland cotton, the most common variety grown in the United States, far below the 10-year average of 28%.
After surveying field conditions, the USDA's National Agricultural Statistics Service found far more acres planted acres weren't going to be harvested in that region, at 17% for upland cotton. Field surveyors also found plants that were producing lower yields than anticipated, at 795 pounds per harvested acre, versus 819 pounds per acre estimated in July.
Cotton futures for December jumped 1.7% to close at 65.79 cents a pound, the highest since July 14, extending Wednesday's gains.
The U.S. Department of Agriculture's estimate of cotton stockpiles and production for the 2015-16 marketing year shrank in August, below both its July forecast and the expectations of analysts who were expecting them to grow considerably. The agency said its estimates were the first for the season that are based on surveys at the field level. The agency said it saw lower planted area, higher abandonment and a lower average yield than it anticipated last month before the field survey.
A large swath of this year's crop in Texas, the largest cotton grower in the U.S., got off to a late start because of record rains in May that delayed planting but reports out of Texas have pointed to ideal growing conditions since then.
"We were a bit surprised by the report as well," said Steve Verett, executive vice president at Plains Cotton Growers in Lubbock, Texas, which represents about 60% of cotton grown in the state.
Mr. Verett said the organization had anticipated fewer acres planted but was surprised by USDA's estimate that farmer abandonment of cotton acres would be on par with historical averages.
"If I have an argument with the numbers for our area, it's in that abandonment figure," he said. "I think we're under historical abandonment. This crop has done very well, our crop was planted a little bit of late so we had to do some catch-up and July allowed us to do that."
In its July report, which is based on historical averages, interviews and weather trends, the USDA thought the southwest region, which includes Texas, would see an abandonment rate of 7.5% for upland cotton, the most common variety grown in the United States, far below the 10-year average of 28%.
After surveying field conditions, the USDA's National Agricultural Statistics Service found far more acres planted acres weren't going to be harvested in that region, at 17% for upland cotton. Field surveyors also found plants that were producing lower yields than anticipated, at 795 pounds per harvested acre, versus 819 pounds per acre estimated in July.
0 Response to "Cotton prices prediction september 2015"
Post a Comment