7 days ago (at149c/lb) cotton set a new all-time-high (ATH) for this crop/commodity. Since then flood damage in Oz and shortages elsewhere have seen China and USA manufacturers/speculators buying in droves. On Tuesday night cotton closed 'limit-up at just under 167c/lb. Last night rose 4.27c to an eye-watering 171.10c/lb. This equates to $850/bale!!! For perspective some 15-17 months ago cotton was $300/bale. Another big night and cotton will have tripled!!! Most growers have almost certainly forward-sold this years crop at about 450-500/bale. But those with large storage have enough water for 2 full years including irrigation for a winter cereal crop. My guess is they will keep most fields aside for next year's cotton planting which they can currently fwd-sell at over 750/bale. Growing costs don't change a lot.... but margins certainly do when the sale price has risen over 2.5x!! Buy IMO.
