The world is expected to consume more cotton than it produces in 2005-06, and send the world stocks-to-use ratio from the high 30s into the high 20s. So why do cotton prices seem stuck in reverse?
Cotton producers can find out the news behind this situation, as well as where cotton prices are headed at the halfway point of the growing season at the Cotton Forum, to be held in New York City, July 7-8, at the New York Board of Trade in lower Manhattan.
The events include a mock trading session for attendees on July 7 and the Cotton Roundtable on July 8, from 8:30 a.m. to 10 a.m. Eastern. You don’t have to be in New York to listen to the Cotton Roundtable. The meeting will be broadcast live on the NYBOT Web site at www.nybot.com and by teleconference to the Ag Market Network listening audience. Questions for the meeting will be accepted from the listening audience. NYBOT will also carry the event on a delayed basis on its Web site.
Panelists at the Cotton Roundtable include O.A. Cleveland, professor emeritus, Mississippi State University, Carl Anderson, Texas A&M University, Jarral Neeper, vice president, marketing, Calcot, Mike Stevens, Swiss Financial Services, Pat McClatchy, executive director, Ag Market Network and special guest speaker Peter Egli, analyst, Volcot America Inc.
Attendees will have the opportunity for educational fun during a mock trading session on NYBOT’s trading floor, on the afternoon of July 7 and that evening experience some entertainment as they’re shuttled to historic Yankee Stadium for a baseball game between the Yankees and the Cleveland Indians.
"Growers know what happens to an order between them and the broker," said Pat McClatchy, executive director of the Ag Market Network, on the mock trading session. "But they don’t know how it’s processed when the order comes in to New York, how it gets into the hands of the broker and the bidding and offering that goes back and forth.
"We have found that the growers who participate have a much better feel for what happens in price discovery and the role of this exchange," he said.
"Farmers have told us that the No. 1 area where they need help is in marketing," McClatchy said. "The more educated a farmer can be in the area of marketing, the better off he'll be."
Now is a good time to reserve a place on the roster. But space is limited. Call Pat McClatchy at 1-888-795-8071 for registration or more information.
The series of educational and informative events are designed to help cotton producers gain a better understanding of how prices are discovered as well as to provide a timely update on cotton fundamentals. It augments monthly Ag Market Network teleconference updates on grain and fiber markets.
The Cotton Forum is sponsored by NYBOT, Certified FiberMax, Cotton Incorporated, Ag Market Network and Farm Press Publications.