South Plains Cotton Update

I have had a really hectic past couple of weeks, teaching QuickBooks and helping to tour dignitaries around the TAWC project in Floyd and Hale counties. Most of what I had to say a two weeks ago, everyone heard on the Ag Market Network, where I was Mike Stevens' special guest for the week. I know that because people called to tell me. And no, I had nothing to do with the market going limit down that day.

I was reading through the South Plains district county extension agent comments on crop condition for last week looking for something to plagiarize and thought Greg Gruben (CEA-Ag - Scurry) made the best point by saying 3 times in only 4 sentences that we need rain soon. Nothing could express my sentiments any better from my time on the road. This week here in Lubbock county I have started seeing open cotton due to drought stress. If the current weather forecast holds, much of the late dryland cotton could be in trouble. The above average heat units have been good for well-irrigated cotton; we will just have to wait and add up the costs to see if it was worth it. At least irrigation fuel costs are somewhat lower than last year.

The market made another break this week, but the December contract seems to be holding around the 58 cent level, with Friday's close back up slightly above at 5834. I went and re-read Mike Stevens' market comments for the week on Monday that a close below 5800 could bring a quick drop to 5600. Maybe we will see in next Thursday's export report that the lower prices generated new sales that helped keep the market from dropping any further. This week's export report was encouraging with total net sales of 238,000 and shipments of 215,000. Four of the five business days of the reporting period were at new lower prices. What's encouraging is that every time we drop below 6000 on the December contract it seems to attract new export business.

For more information on cotton marketing be sure to check out Dr. John Robinson's weekly cotton marketing newsletter by clicking on Market Outlook under the Resources drop down list from the Extension Ag Eco website agecoext.tamu.edu. Also, to listen to recordings of the Ag Market Network conference calls, as well as weekly commentary from Mike Stevens, go to AgMarketNetwork.net.

Remember to tune in every Thursday at 1:30 p.m. for the South Plains Cotton Market Update live on Ag Talk on Fox Talk 950.