March 14, 2024

 As noted so many times before…

Cotton typically moves in 30-50 cent blasts…

And I think this BULL MOVE is just getting started

If you are in the Cotton business, you will know that back in late 2023 and early January, when I was repeatedly recommending Buying Cotton, looking for $1.10, EVERYBODY in the industry WAS FLAT OUT BEARISH, which IS why farmers were influenced to sell just about their entire just harvested crop, as the best cotton broker I know told me, “earlier than I have ever seen it.” For real. With fears being stoked of Cotton falling into the 60’s, farmers handed their crop over to the merchants…And then watched it rally 20-25 cents within the next 6 weeks…which since its Feb 28^th high has been followed by some EXTREME volatility, culminating in today’s lower close, now about 10 cents off that high from just 2 weeks ago…and scaring the crap out of ANY remaining farmers who had still owned a few last bales they needed to sell.

I won’t be longwinded here…I’M GONNA SAY THAT 99% OF THE PLAYERS AND PARTICIPANTS IN COTTON ARE NOW TOTALLY CONVINCED THAT THE TOP HAD BEEN MADE IN THIS MARKET…AND I COULD NOT DISAGREE MORE.

I THINK COTTON IS HEADED UP, PROBABLY ALL THE WAY INTO THE JULY EXPIRATION, AND THAT, FOR THE TIME BEING, I THINK IT WILL MINIMALLY HIT THE 120-125 AREA…

I doubt I’ll get any takers here, especially from within the Cotton world (where all the talk is bearish) but I LOVE this $1500 Call Option, right here, right now…today.

And as for new crop…

I am still buying May Calls as well…

Contact me if you want to talk about any of 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