July Cotton Futures - Lumber - Sugar
The July Cotton contract dropped almost to 52 and now has recovered back up to 55. I was thinking that I would buy some more when it was down, but when it hit 53 it really started looking like it was going to go to 52 and that’s what I was waiting for.
Now it’s all the way back up over 55 again and it looks like I waited too long again to buy. Oh well.
I really think that the high prices of corn, wheat and some of the other grains are going to force cotton up when farmers start replanting. Any farmer who has a choice is going to switch their cotton fields to something else which will have to push the price of cotton up.
I am not sure how long this process will take, but I am thinking before the end of this year there should be some significant results.
Lumber is also another commodity that I am watching now, I think that from now until the end of the year, there is a better chance that it will go up, at least more than it will go down.
The other commodity I am looking at now is world sugar #11, they are starting to use sugar to make biodiesel and the amounts they are using could easily cause the price to rise.
The biodiesel producers are very sensitive to the price of sugar, if the price of sugar drops much at all, I think they will start buying much more heavily which will keep the price up. This will really limit the down side potential and make it more likely once again that prices will increase more than they will decrease.
Now it’s all the way back up over 55 again and it looks like I waited too long again to buy. Oh well.
I really think that the high prices of corn, wheat and some of the other grains are going to force cotton up when farmers start replanting. Any farmer who has a choice is going to switch their cotton fields to something else which will have to push the price of cotton up.
I am not sure how long this process will take, but I am thinking before the end of this year there should be some significant results.
Lumber is also another commodity that I am watching now, I think that from now until the end of the year, there is a better chance that it will go up, at least more than it will go down.
The other commodity I am looking at now is world sugar #11, they are starting to use sugar to make biodiesel and the amounts they are using could easily cause the price to rise.
The biodiesel producers are very sensitive to the price of sugar, if the price of sugar drops much at all, I think they will start buying much more heavily which will keep the price up. This will really limit the down side potential and make it more likely once again that prices will increase more than they will decrease.
