Monday, June 28, 2010

I think it remains to be seen what will happen

Is Comeback Inevitable?

Economists Across The Belt Point To Encouraging
Market Signals For 2010

Tommy Horton

"I think it remains to be seen what will happen," he says. "Would those gins reopen or will existing gins be in a position to process more cotton? As I said before, I think the infrastructure is still there for a good recovery and more production."

Anyone who has an understanding of commodity prices knows that  volatile price swings can unexpectedly  occur. Given that fact, Adams says the lessons learned in the past three years prove that producers must know how to respond to volatile market signals. That requires flexibility in all planting decisions.

Not only are those decisions affected by market signals such as the New York futures contract, but other factors must also be weighed – such as input costs. Oil prices have been as high as $130 a barrel and then dropped to $40 in a short period of time. Now, they are back to about $80.

source : cottonfarming

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