Inadequate rains in India supporting prices along with the rumors of a renewed appetite for U.S. cotton that is paired with producers unwilling to sell at recent lower levels. TomorrowΆs export sales is needed to confirm recent demand speculation, however, August 12th ought to be most influential.

OUTSIDE MARKETS: Row crops jumped higher on turmoil and crop condition concerns in the EU; Putin has now signed a decree that will limit or ban imports of agriculture products from countries which sanctioned Russia, causing a short-covering rally in wheat. Leading the rally for the grain complex, all three major wheat markets gained. After making new highs for the current move, the U.S. dollar slipped on concerns that sanctions against Russia will lead to the currency losing some of its desirability.

General Comments: Fresh, bullish fundamentals have surfaced as the cotton market continues to recover. Domestically, the crop may be healthier than last year but the heavy rainfall in the Plains has aided the development and spreading of pigweed in some fields; this weed has been known to trim yields by as much as 40% in the past. Unlike other plants, pigweed spreads its seed via water rather than wind, which explains the recent rumors in Texas that producers are becoming increasingly concerned. Also aiding prices and causing uneasiness is reservoir levels in West Texas. From Lubbock up to Palo Duro, reservoirs range from 12.6% as low as 2.8% filled; south of Lubbock, there exists a reservoir that remains only 1.1% full.