I've posted numerous times how cotton has blown-away all other commodities over the past 20 months. Yet last night was something else!! Within blinking cotton shot limit-up in USA and has closed at just under 202c/lb!! lets look at this another way. hang around Wee Waa in April and you'll see the raodside littered with split cotton. Fields with good yields often run a harvester through for a 2nd time to get more off. Even so the fields are covered with thousands of unpicked bolls that are ploughed-in to make way for winter wheat. let's say you have a lazy weekend in Moree and can't face the TV anymore. you can drive into a paddock and fill sack after sack with handpicked discarded bolls. Well that was last year! now this stuff is worth $4.40/kg and it takes less than a couple of minutes to pick a kg of cotton. Works out at $130/hr if you keep the stuff. Will we see cotton thieves sneeking out to farms to fill their Valiants?? Who knows but any cotton farmer who hasn't fwd sold is grinning. Those who have at say $450/bale in August and have a yield shortfall could lose the farm!! Cotton now $1,000/bale. That's triple what it was 20 months ago. meanwhile growers can sell next years crop on the futures for about $900/bale. You'll pay back the farm in a single season! Incredible stuff. God alone knows where it will end. Yet shares in cotton farms remain stuck and without updates re current crops something doesn't match!! dyor.
