Importance of export markets cited. Cotton grown in Texas “could be spun into yarn in North Carolina, then shipped to China to be woven into fabric, and from there go to Vietnam to be made into a pair of jeans that is sold in London.”
Cotton futures settled mixed Wednesday, with December grinding by a narrow margin to its lowest close since the day before the bullish August supply-demand report and March finishing with the only gain.
- December closed down 21 points to 62.49 cents, around the middle of its 69-point range from up 10 points at 62.80 to down 59 points at 62.11 cents. This was its lowest close since Aug. 11. March settled up 13 points to 62.26 cents.
- Volume dipped to an estimated 17,300 lots from 17,914 lots the previous session when spreads accounted for 4,406 lots or 25%, EFP 330 lots and EFS 42 lots. Options volume totaled 1,751 calls and 4,834 puts.
A producer from the Texas High Plains cited the importance of export markets and promotion of U.S. cotton abroad in remarks at the mid-year board meeting of the National Cotton Council in Charleston, S.C.
Cotton Council International President Dahlen Hancock, who has a farming operation just south of Lubbock, shared his firsthand impressions of Cotton Days in Asia and executive delegation visits to Latin America.
He explained that the work CCI is doing in U.S. cotton export markets translates into more demand through the supply chain.
“As a U.S. cotton producer who typically only sees the production end of the supply chain, I was amazed to participate in the astounding array of overseas promotional events for our fiber,” he said in a CCI report.
Noting that consumer demand and exports remain vital to maintain U.S. cotton’s profitability and the business success of its partners, Hancock said itΆs critical that CCI continues high-caliber promotion and visibility for U.S. cotton and cotton in general.
Ninety-five percent of the U.S.-grown fiber is exported either as fiber or yarn, with exports expected to account for 73% of the market offtake of the raw domestic crop this marketing year.
“The cotton I grow in Texas could be spun into yarn in North Carolina, then shipped to China to be woven into fabric, and from there go to Vietnam to be made into a pair of jeans that is sold in London,” Hancock said.
He added that CCI “is pushing and pulling that fiber every step of the way and will continue to develop innovative programs in support of U.S. cotton around the world.”
Reece Langley, NCCΆs vice president for Washington operations, reported on farm policy, crop insurance, trade, regulatory and tax issues, and the congressional outlook for the remainder of 2015.
When congress returns on Sept. 8, its focus will be on approving a continuing resolution to fund all the federal government beginning with the new fiscal year on Oct. 1, he said.
Efforts will continue on NCCΆs priorities for the omnibus bill, he said, including reauthorizing the use of marketing certificates for the marketing loan program.
Futures open interest fell 1,379 lots Tuesday to 178,810, with DecemberΆs down 1,451 lots to 125,564 and MarchΆs down 229 lots to 40,204. Cert stocks declined 1,316 bales to 65,881.
