Futures Market, Rotation Positive For Cotton
Carroll Smith
Senior
Although farmers sign up cotton acres, they aren't committed to planting until they lock in a price. The biggest factor affecting acreage in this area, Stephens says, is the relationship between cotton and grain prices.
"As time goes on in the market and a farmer has scale-up orders and locks in a good price, the more cotton acres he can commit to," he notes.
Granted, it's still hard to make an accurate prediction for the Mid-South, but, Dec 2010 cotton futures prices and rotation benefits appear to be in favor of an increase in cotton acres.
source : cottonfarming
Carroll Smith
Senior
Although farmers sign up cotton acres, they aren't committed to planting until they lock in a price. The biggest factor affecting acreage in this area, Stephens says, is the relationship between cotton and grain prices.
"As time goes on in the market and a farmer has scale-up orders and locks in a good price, the more cotton acres he can commit to," he notes.
Granted, it's still hard to make an accurate prediction for the Mid-South, but, Dec 2010 cotton futures prices and rotation benefits appear to be in favor of an increase in cotton acres.
source : cottonfarming
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