Cottonseed prices moved higher last week throughout the origin markets due to oil mill bids for old and new crop. ADM was / is bidding new crop at $270 delivered Valdosta, GA and $365 delivered Lubbock, TX. PYCO tried to be a seller of new crop Texas seed in order to push the market lower but was unsuccessful and is now reportedly bidding $365 delivered Lubbock gin run. These bids from the oil mills are aggressive but they still have a huge crush margin basis today’s meal, hull and oil values. I expect they will continue to bid up the market in order to buy their needs for the balance of old crop and new crop.
Texas did receive good rains over the weekend and I’m surprised that ginners are not interested in selling this morning. They are not and the comments are that yeah they got a rain but they need one every 7-10 days to make a crop. I’ve heard several growers and ginners say that the dryland growers in Texas expect to collect insurance on their cotton and then replant to milo which will make them good money. Gins are very cautious as they truly don’t know what size of crop to plan for in this environment….so, they wait.