March 1, 2024

 BUY COTTON AGAIN

Basically nobody in the Cotton world was bullish Cotton as it moved up over 20 cents since January 1^st…We took profits on all of our long positions Wednesday night with the idea we would probably be buying the market again into weakness within days or weeks.

I am pretty certain that the 8 cent sell off in the past few days has convinced all those formerly bearish cotton farmers, analysts and traders that Cotton has totally reversed and that they are ALL once again convinced that Cotton will be going down, not up, from here.

I DISAGREE. At a minimum, I think Cotton is only half way to where it is going and we began buying again this morning.

I will remind Cotton people that pretty much the entire crop passed into the merchant’s STRONG hands back in January…and that one decent, one month rally is not enough for them to let go of the crop yet…

And regarding new crop December, I also would recommend that farmers ignore the generally bearish outlook still being touted by analysts and NOT be locking prices here.

The market is quite volatile so this option price easily may have changed by the time you read this…

Thanks,

Bill

770-425-7241

866-578-1001

All option prices in this newsletter include all fees and commissions. All charts, unless otherwise noted, are by Aspen Graphics and CRB

The author of this piece currently trades for his own account and has a financial interest in the following derivative products mentioned within: Cotton