Advice Alert: Push new crop sales another 10%; be 15% priced if a strictly cash marketer and 20% if a futures/options user.
Funds buying cooled off today and that’s all it took to trigger profit-taking by others. New crop futures never ventured very much above the 65.90 that triggered new crop sales advice on our part and gave back triple digits today. It didn’t help when the International Cotton Advisory Council (ICAC) raised estimated inventories globally for the 2015/16 crop year to 21.41 million tonnes, down just marginally from the huge stock of 21.7 million ICAC forecasts for 2014/15 ending stocks. Even though their March production forecast is down from 2014/15 production by nearly 2 million tonnes, ending stocks are projected to decline only about 160,000 tonnes due to lower global demand expectations, particularly imports by China.