Mill on-call sales have
increased almost every week during the 2017-18 marketing year, an excellent
indication of improving demand. Cotton demand has resurfaced. Next year, cotton
growers across the US will hold on to most of their 2017 plantings.US cotton is the most competitive in the world. With futures between 67
and 72 cents mills will continue to flock to the US for cotton. US cooperatives
and merchants have been aggressively offering strong basis bids to potential
mills and that has encouraged excellent sales.
Driven by consumer preferences, and the rapid increase in polyester prices due
to massive worldwide pollution issues, cotton has become much more price
competitive versus polyester and other plastic fibers. Presently cotton appears
to be the better alternative in 2018 for the Midsouth and the Southeast
regions. Cotton will again be the only alternative for Texas and Oklahoma.
A slightly bullish scenario now exists for cotton, but any movement above 71
cents will be difficult. While the US crop was judged higher, as was US
carryover, the more important decline in world stocks led the market higher.
Some still feel that a trip to the very low 60s is imminent as growers could
become more aggressive sellers as the end of the year looms.
Source: Daily News,USA Tuesday, 14 November 2017