China is expected to use at least 4 million bales more than it produces this season for the second year in a row. That should cut their burdensome stock level in half. In the past, China has imported a considerable amount of cotton when their stocks declined below 10 million bales. Barring unexpected changes, December 00 futures will likely trade between 55 to 65 cents per pound the rest of this year. Producer price strategies should continue to establish floor prices during market rallies in December 00 in the range of 60 to 65 cents.
Puts alone are useful price insurance.
The market tends to be fairly flat, similar to December 92 and 93, during a year of transition from abundant supplies and low prices to fewer stocks and higher prices. Caroline Smith Technical Secretary Extension programs serve people of all ages regardless of socioeconomic level, race, color, sex, religion, disability or national origin. 526.00 499.00 538.98 521.13 480.00 500.00 481.00 509.00 494.00 706.00 673.00 625.00 607.00 635.00 Beginning Stks.