Cotton futures catapulted to a new record for the second day in a row after U.S. exports jumped. The U.S. Department of Agriculture reported that export sales rose 26% from a week earlier in the week ending Feb. 3rd. Global demand continues to exceed world output. Corn prices are reaching 2 year highs after the U.S. Department of Agriculture expects U.S. corn supplies to reach record lows of more than 15 years ago.
The Chinese plan to increase their corn imports and Chinese cotton farmers are currently hoarding their cotton harvest. China is the largest importer of cotton. An American farmer in Nebraska intends to stock pile his corn. It’s a great time to be a farmer these days.
Cotton prices typically strengthen from August to mid November and Corn rises with conviction from April to June and October to December. For stock investors interested in investing in cotton and corn, ETNs (exchanged traded notes) are available.
Cotton (BAL) Corn (CORN)