ICE Cotton Prices Dipped Earlier This Week on Heavy Rain Received in Texas

ICE cotton prices dipped earlier this week on heavy rain received in Texas, the top cotton growing region of the country. Prices then rose in thin trade at the end of the week and settled the week in a positive note as the dry condition returns for the weekend.
 
The continuous decerts also supported the market, as we see a total of a little over 150k bales decerted this week. Physical activities remained light as a total of 55k bales were reported sold for the week ending July 11th, just slightly better than a week before.
 
Macro economic factors have stabilized as Bernanke reassured the markets that QE accommodation will not be leaving anytime soon. That allowed the interest rates to drift lower as the USD continues to weaken and equity/commodities moved higher.
 
Feels like the third quarter could be more of the same as the Northern hem crops will be subject to much uncertainty with weather and abandonment until harvest in the late 4th quarter. Expect to see Z’13 cotton trade in the 80/90 cent range until we get closet to harvest.