Ag Market Update - October 20, 2015

Ag Market Update - October 20, 2015

by Ron Lee

Highway 118 West, PO Box 171

Bronwood, GA 39826

Work:229.995.2616

Mobile:229.881.3903

ronlee@mccleskeycotton.com

Agricultural Settlements

Commodity High Low Close Change YTD

Dec 15 Cotton .6387 .6316 .6378 + .0054 - .0064

Dec 16 Cotton .6402 .6367 .6388 + .0051 - .0190

Dec 17 Cotton .6466 + .0053

Dec 15 Corn 3.7775 3.7200 3.7700 + .0400 - .4400

Sep 16 Corn 3.9725 3.9250 3.9625 + .0250 - .3175

Nov 15 Soy 9.0175 8.8950 8.9600 + .0575 - 1.0950

Nov 16 Soy 9.0625 8.9800 9.0300 + .0475 - .8900

Cotton LDP Payment - 5.30 cents per pound (3.78 next week's estimate)

Today's Market Report

This will just be a short update as most of you are wide open in both peanuts and cotton and don't want or care to read 500 words on a cotton market that was down 50 points yesterday and up 50 points today since last Friday's update. The December market closed at .6378, basically in the mid point of the trading range since last Tuesday's big move higher. I still see one more good push from the market at the stiff resistance around .6420, or the 200-day moving average. We still don't hear of much cotton being sold at these somewhat inflated levels. There are two important things that I do want to mention in this short update. One reason for cotton's relative strength and inability to follow through to the downside after yesterday is the impending storm scheduled to affect the cotton-producing area of West Texas tonight and into Thursday. With the catastrophic storm in South Carolina still fresh on everyone's mind, it's easy to understand nervousness with potentially millions of bales open in the face of a storm that is predicted to bring 3 to 5 inches of rain to the Lubbock area. The second item of importance is for growers with cotton off the stalk but not LDPed, I would advise on taking this 530 point payment this week, locking it in before Thursday. Due to a rising market and an increased A index price, we see this payment dropping by approximately 200 points next week. If you have cotton ginned, I will be in contact with you to make arrangements to lock in this payment. If you have picked cotton, but have not called it in, let me know and we can proceed with the process to collect the LDP in the field. Again, with the market higher, I would advise getting the cotton sold as soon as possible. While the weather situation in Texas certainly bears watching, should there be only quick moving storm with little or no hail, I think this will represent another selling opportunity. We will have try and have a little more comprehensive report tomorrow, depending on how the market reacts to the weather. Please call our office if we can help you with your harvest in any way.

Inside the Cotton Market

Comments will return tomorrow.