Oklahoma State University Extension Grains Market Analyst Dr. Kim Anderson talks wheat prices with SUNUP's Lyndall Stout this week- but first he gives a run down on the status of global cotton production. Currently cotton futures prices have fell between a range of $68 - $72 since September 1st, with weak support from the December contract at $68 and strong support at $66.
According to Dr. Anderson, the overall movement in the cotton market is being driven because of widespread sub-average production around the world. Anderson reports that the USDA has marked world cotton production at 102.7 million bales at this time with the five-year average being 115.4 million.
Foreign production totals well below the average of 102.2 million bales at only 86.7 million. In the East, China has produced only 21 million bales, below their normal of 30.8 million. India also below its average of 28.9 million yet less drastically at 26.5 million. Domestically though, US production is right at its normal hitting just below the 16 million average at 15.9. Anderson notes that Oklahoma’s crop is recorded above normal this year.
Anderson also explains that wheat prices remain wallowing in the $3 vicinity, with attentions now focusing more on the value of the dollar, which Anderson says will impact both cotton and wheat prices. Currently, the dollar sits at approximately $97.23 having reached as high as $99, with support at $96.90. Anderson concludes the futures index has stayed between the $95 - $99 for the last six to eight months.
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