Doane Cotton Close: Big Drop Wipes Out Gains

Today’s big drop not only confirmed last night’s warning about the “bear flag” formation in December futures, but wiped out gains from the past three days and then some. Monday’s USDA Crop Progress report showed cotton planting at the slowest pace in 20 years and that helped draw some buying. But today it was back to trading the welcome rain for Texas cotton country as nearly insuring the remaining acreage will not only get planted, but may have a chance of generating more than crop insurance proceeds for the sower.