Hurricane Harvey lifts cotton prices. Will grains futures find better positions in September?

Cotton Prices

The losses of the tropical storm Harvey have left Houston in complete devastation and which led to the southern U.S. cotton futures to be lifted in higher positions. The U.S. national Hurricane Center warns that there will be more catastrophic floods across south eastern Texas where in some areas, including Houston have reached 50 inches,

Flood warning has spread farther north and east, and additional rainfall accumulations of 3-6 inches in some areas while some are 10 feet deep.

The impact on the New York futures on Monday was further than a 1.3 percent gains and was sold at 70.86 cents per pound for the December Delivery which is enough to see the contract to close above its 100-day moving average for the first time in three months.

Louis Rose, at the Rose Commodity Group stated that some estimates for losses could reach as high as 500,000 bales while estimating gross losses in excess is at 250,000 bales.

Meanwhile, for soybean and grain producers, the problem with august has been weaker prices.

And there is some hope, that by the end of the month, U.S. soybean and corn could bring some change in the prevailing headwind.

Soybean contracts closed in the bear for the session and were down by 0.5 percent to $9.33 for a quarter bushel for the November futures.

A demand sign for corn was less outstanding, with US ethanol production last week dropping 10,000 barrels a day to 1.04m barrels a day.


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