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					                                   NUNN COTTON LETTER
                                        NUNN COTTON COMPANY, INC. October 30, 2009
                                                             ESTABLISHED 1984
                                           Phone: 1-731-772-0184; Cell: 1-731-780-9036; Fax 1-731-772-0189
                                          email: nunncotton@newwavecomm.net EWR HOLDER ID M772018
                Close          CHN            WK          MONTH           HIGH           LOW           CONT           CONT            WK             WK            2010 CROP:
                                              CHN         CHAN                                         HIGH           LOW            HIGH           LOW          70.00 R 5 41-4-4-
Dec 09          6764             +7            +26          +480           6793           6657         10150           4525           6859          6610        AWP: 51.98
Mar 10          7089            +35            +88          +589           7114           6970          8850           4967           7114          6880        09 Loan: 6-700
Dec 10          7507            +26           +162          +508           7507           7382         10150           5387           7507          7270        A INDEX: 68.75
Dec 11          7737            +37           +140          +288           7737           7700          7737           6107           7737          7595        2009 R 5: 64.25

                                                       cotton to total 166,000 bales. 2009/10 upland with the most interest in white grades (41s
    Monday, the week’s high for the December
                                                       sales numbered 82,300 bales with 2010/11         and higher) as most merchants feel that
contract was made at 68.59 and cotton managed to
                                                       sales totaled 19,600. A marketing year high of there will be a storage of that quality cot-
close three points higher at 67.41 while nearly all
                                                       64,100 bales of Pima were sold.                  ton in Memphis territory. The Southeast
other commodities were down sharply as the dollar
                                                           More rain pelleted Memphis territory this    has a very good crop, but it does have
rallied. Soybeans were down 19 1/2 cents and corn
                                                       week. Many areas have received record rain- some micronaire issues, as state averages
was down 19 3/4 cents. Cotton rallied back from
                                                       fall for October in 2009. The record, or near    are in the 46-48 range. In the northern
66.66 to mark a small gain. Cotton recorded small
                                                       record rainfall comes on the heels of a wet      Delta, the mike averages are 43-44. The
losses Tuesday (December -36 at 67.05) as Decem-
                                                       September. Arkansas recorded its second          south Delta has high mike and the recent
ber fell to the weekly low of 66.10 and rebounded
                                                       wettest September on record, while September classing reports (what cotton that has been
back above 67.00. Soybeans and corn were again
                                                       was the 4th wettest for Tennessee and the 5th picked down there!), the average grade is a
lower. Wednesday saw cotton meekly close down
                                                       wettest for Mississippi. Rainfall amounts        52-4. The average grade in the Memphis
17 at 66.88 and grains were down for the third
                                                       across the north Delta during October ranged classing office so far this season has been a
straight session. Markets were higher on Thursday
                                                       from five to nearly fourteen inches.             41-4-35 with a 4.37 mike and 28 GPT.
as December closed at 67.57, up 69 and corn (10
                                                           With the rainfall, harvest in the Delta has      December cotton futures traded this
1/4) and soybeans (+17) closed higher, too. Cotton
                                                       halted, and in most areas, no cotton was         week in a 66.10-68.59 range set Monday
opened lower, but found support beneath 66.50 at
                                                       picked after the wee hours of Tuesday morn-      and Tuesday. Cotton was unable to break
66.44, and rallied 190 points to 68.34 before drift-
                                                       ing October 27. Current classing totals for the out of that range as it was influenced more
ing lower into the close. Cotton moved higher as
                                                       three Memphis territory classing offices show by the US dollar and other commodities
other commodities rose. Friday, cotton had a mea-
                                                       but 261,729 bales classed by October 29. If      than US weather.
ger close of seven points (67.64) in a session that
                                                       we use the October 2009 USDA production             Most observers feel cotton prices are
saw the 68.00 area as resistance and support back
                                                       estimate for the five state Delta region, only   bound to move higher because of the threat
about 66.50. Both soybeans and corn were down.
                                                       8.26% of the 2009 crop has been classed, with of smaller crops across the world, Pakistan
    This week marked the anniversary of two impor-
                                                       a small percentage to be classed and ginned.     might import two million bales of cotton,
tant cotton market dates. October 26, 2001 was the
                                                       Classing increased 157,159 bales during the      and growing Open Interest (OI) in cotton
date that December 01 futures fell to 28.20. This
                                                       week, but the harvest is extremely late.         futures. OI in cotton futures grew 40,304
was the beginning a market rise that ended two
                                                           The AWP for the current week rose to         contracts between 9/30 and 10/29 as cotton
years later. October 30, 2003 was the date that the
                                                       51.98 with an LDP of 2 points. Last week it      futures 470-560 points. But, it looks like
December 03 contract peaked at 84.40 before col-
                                                       was 62 points and the week ending October        we are still range bound between 66-69.
lapsing the next month as it entered delivery and
                                                       22, 256 points. Spot prices for equities vary,
signaled the beginning of a four year bear market.
    December cotton rose to a thirteen month
high October 15, 69.49, and closed the month Cotton Prices: 1993-2009 41434 3.5-4.9 mike 27.0 GPT                      Year      Rule 5 Loan
480 points higher and the week, 26 points
higher. November soybeans were down 28              Year      Rule 5      Loan        Year       Rule 5   Loan         01/02      2900      1-500
cents for the week, but closed 50 3/4 cents        09/10       6425       6-700       05/06       4950    3-400        00/01      6125      6-800
higher for the month. December corn was 31
3/4 cents lower for the week, but 22 cents         08/09       4100       3-400       04/05       4300    2-350        1999       4900       1000
higher for the month.
    The weekly export sales report Thursday        07/08       6165     3.5-500 03/04             7200     1400        1998       6580       1800
showed net new sales of US Pima and upland 06/07               4600       1-200       02/03       4425    2-400        1997       6980       1150

NUNN COTTON CO., INC. acts as a broker in buying & selling cotton. Your business is wanted and appreciated.
We can assist in your marketing. Please call. Information contained herein is from sources believed to be reliable, but is not guaranteed as to accuracy or complete-
ness. No responsibility is assumed with respect to any statement, nor with respect to any expression of opinion herein contained. All views are the opinions of the author and no statement
should be construed as an offer to buy or sell a commodity. This publication is for information purposes only.

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