Headlines:
- COTTON FUTURES EXTEND GAINS, PARIS WHEAT RALLIES
COTTON FUTURES EXTENDED THEIR RALLY, FUELED BY DRY WEATHER IN THE US AND INDIA AND THE TIGHTER STOCKS FORECAST IN THIS WEEK‘S WASDE, WHILE GRAINS EASED FURTHER, AS WEATHER FEARS IN THE US CONTINUE TO EASE. DECEMBER COTTON FUTURES, THE MOST WIDELY TRADED CONTRACT, ARE UP 12.9% ON THE WEEK. “THE PRICE SURGE WAS SPARKED BY THE USDA PREDICTING A STEEPER THAN ANTICIPATED DECLINE IN GLOBAL COTTON STOCKS IN THE UPCOMING 2016-17 CROP YEAR,” SAID COMMERZBANK. “CHINA IN PARTICULAR LOOKS SET TO SEE STOCKS REDUCED CONSIDERABLY ON THE BACK OF LOWER PRODUCTION IN CONJUNCTION WITH HIGHER DEMAND.”
Summary:
Corn futures demonstrated another wide ranging day. Both the November and September contracts posted an 18 cent trading range. All efforts by all three markets to posts a positive gain on the day was met by still selling pressure. Corn, Soybean and Wheat were all positive in overnight trading but upon entering the regular session prices were not able to hold up. Once again the news outlets are suggesting that futures closed lower on today because weather reports calling hot and dry weather in the long-term may not be as bad as originally expected but that does not explain the overnight rise.
Today’s price action finished with September and December Corn down another 5.50 and 6.50 cents. Soybean futures closed in the middle of it’s trading range today with September down 9 cents and November down 6.25 cents. Wheat returned last week’s lows and breaking below 415 could mean trouble for the September contract. It closed the day down 8.50 cents.
Yesterday, House members voted by a large margin to clear legislation that will prevent states from requiring on-package labeling of GMOs. The lobbyist got their way and the Vermont law that went into effect on July 1st will essentially be voided. The legislation was crafted in the Senate and is now headed to the White House for President Obama’s signature. The White House on Wednesday said the president would sign the measure.
