Cotton: When is this thing going to turn around?

From Johnny Parker's commentary today on the Commonwealth Gin web site (Windsor, Va.):

You would think this cotton market could get it right.

POP payment will probably make a new high on Friday for 2007 when just the opposite is what we want. So anyway, I guess the question will remain "when is this thing going to turn around?" Even for cotton in the loan, the POP payment is used in calculating the value of how much more equity remains in the cotton. I have been reading the posts and comments that indicate that we should see some positive developements sooner or later.

While I am hopeful, this marketing stuff tends to train us to remain skeptical. Most of us folks on the cotton production side of the cotton industry are hoping for some big price increases both to finsh up with this years crop, and to give us some incentive to plant as much cotton as we have been planting. Currently 100 bushel corn can make as much money on a piece of land as an 800 pound cotton crop in this region so the price of cotton needs to go higher if it is going to be better than corn.

Commonwealth Gin provides advice on production and marketing of cotton. Information contained herein is from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. No responsibility is assumed with respect to any statement, nor with respect to any expression of opinion herein contained. All views are the opinions of the author and no statement should be construed as an offer to buy or sell a commodity. This publication is for information purposes only.