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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
WEEKLY COMMENTS: COTTON TRADES WEEK IN 249 POINT RANGE. MORE RAIN ACROSS MEMPHIS
TERRITORY; RECORD RAINFALL FOR OCTOBER IN MANY AREAS. OPEN INTEREST CLIMBS 40,000+ CON-
TRACTS DURING MONTH.
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.
