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  • Don't Bale on Cotton (Yet); Got Coffee? [View article]
    Seasonal traders tend to looking for a series of relatively low-risk plays. History seems to indicate that July cotton's best odds for gains is in the first half of May.

    Hang on after that is more a crap shoot.


    On May 11 11:30 AM Brett Owens wrote:

    > Hey Brad - great call on cotton. So do you think it can continue
    > it's rally past this week, or are you looking to book profits soon?
    May 11 12:57 pm |Rating: +2 -1 |Link to Comment
  • Don't Bale on Cotton (Yet); Got Coffee? [View article]
    Cotton didn't start its uptrend until March, so a year-to-date comparison may not reflect the way people actually trade futures. After all, YOU don't automatically put on new trades at the top of the year, do you?

    In the second quarter, cotton has actually outperformed sugar.

    But, let's make a distinction between a seasonal trade and a secular play. Seasonal trades are percentage shots, limited in duration and scope. A secular trade is called for when fundamentals align in such a way as to indicate a long-term tipping in the supply/demand balance.

    If you came to the cotton trade late, there's still a good probability of capturing some upward volaility from the seasonality in the July contract.

    Postpone demand? You mean Coca-Cola is a STAPLE?

    On May 11 09:08 AM gva1203 wrote:

    > sugar is the best return in ag futures this year, just over 25% ytd
    > as of last Friday. Plus the story behind sugar (world S&D deficit
    > over 10m/ton) is more interesting than cotton, after all people can
    > always use an old pair of jeans and postpone demand, whereas fizzy
    > drink bottlers will not stop procuring sugar to feed mini-markets...
    > my advice is to buy V9, it's in correction mode this week and perhaps
    > you pick it up at 15.50cts today, the upside potential is about 300pts
    > (as per some comm trading houses)
    May 11 12:50 pm |Rating: +1 -1 |Link to Comment
  • Cotton: The Not-So-Hard Asset [View article]
    The cotton deliverable against the futures contract IS the same (or priced at discounts or premiums to the basis grade per exchange rules).

    That's why it's a COMMODITY. Please consult your dictionary for a definition.


    On Apr 29 04:23 AM SOMALIA BAY wrote:

    > Not all Cotton is the same, for example most of you wear 5$ T-Shirts
    > ( OK, 50$ suites) made of bad quality cotton that wouldn't even pass
    > laboratory test for cotton, it would dissolve like shit.
    > I wear Paul&Shark Yachting shirts 150EUR each and relax.
    >
    > www.paulshark.it/eng.html
    >
    > If ever you will make money trading, buy this shirts.
    Apr 29 09:26 am |Rating: +3 0 |Link to Comment
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