By Jeff Thompson, Manager, Autauga Quality Cotton Association, Prattville, Alabama

Well there isnΆt much to say that hasnΆt been said before about this cotton market. Saddled, by an overall lack of demand weΆve been entrenched in a trading range of 60 to 63 cents. Buyers continue to make purchases on as needed basis. Confident prices will remain at these levels, theyΆre content to not stockpile inventory.

Without additional demand there is no support to push prices higher. We can expect to remain here at least until the spring when next yearΆs planting intentions are considered and the size and quality of this yearΆs world inventory is better known. Until then the LDP, currently 4.84 cents, acts as our friend, safeguarding us from any unexpected break in prices.

There is some cause for optimism when one looks beyond the horizon. The millΆs desire for quality continues to favor U.S cotton, especially as the supplies of such fiber are sure to shrink under these extreme harvest conditions. Also, it appears the world crop itself is getting smaller.

As we begin to see some stabilization in the U.S. and world economies, there is a hint that demand will begin to improve. Upcoming holiday sales will be a good indicator. One other item, which may provide the best cause for optimism, is contrarian in nature.

There is currently an extremely negative sentiment among all the trade considering the lack of demand and this prolonged sideways trading market. Lest we not forget the consequences when everyone gets on the same side of the boat; change is inevitable as fortunes are reversed.

Until then, we look for pricing opportunities using a combination of futures price, LDP and market premiums. Anyone not in a pool or with uncommitted cotton, we would welcome the chance to assist you with pricing your cotton.