Marketing-Communications
The time may be right for wheat to come to life. For many months, wheat stocks have been viewed as excessive. When any commodity with negative fundamentals can post and hold a near 50% rally, it gets my attention, as it should yours.
For a crop with the biggest carryover relative to use, wheat has showed a lot of life recently.
Egypt said on Sunday that its strategic stock of wheat is safe and covers four-month needs despite a Russian export ban.
Over the last several weeks, cotton prices have seen a decent run in prices. Ashley Arrington, founder of AgriAuthority, told AgDay host Clinton Griffiths cotton markets can be “dramatic at times, especially in relation to the July contract.”
China holds more than half of the world’s growing cotton stockpile, and it’s running out of storage space.
Cotton entered a bear market as improved prospects for crops in the U.S., the world’s biggest exporter, compounds the outlook for abundant world supplies.
China is hoarding a record amount of cotton, increasing the risk of a supply surge that would tip prices into a bear market.
Following the recent record-high cotton prices, demand for cotton has steadily decreased while output has increased.