Cottonseed prices have surged higher at the East Coast, Delta and Texas regions. Soy meal is up another $5-7. Ginning is still delayed due to peanut harvest in the East and rain in the Delta. It appears the upper Mid-West dairies are buying clock cottonseed and willing to pay the higher prices as they have no commodities covered for the new season. The conversation has changed from gin run (OND) bids and offers to Jan-Sept which carries a $20 premium / carry cost to OND. I think this is due to the delayed harvest / ginning and the smaller crop. Ginning will happen November through December and traders are getting concerned that the OND shipment period is dwindling do to the harvest delay. This causes problems loading the pipeline to California, Idaho and Washington for the OND period when we usually see cheaper origin values. So, this price move higher is a reflection of the market transitioning from OND values to the January forward values. This usually happens after ginning season.
Liquidity is still a problem as gins are still not up and ginning. Please call to discuss volume on the below prices before making a trade. I’ll try to give you some tonnage to trade but need to take caution at these higher prices in this frenzied market.
Please call to discuss further.