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Central Texas | I have posted (and seen posts on this subject) before... with the grains buying acres, I think that cotton has to rise. We have plenty now but if the smart end users realize that nobody will be planting any this year it should create demand on the front end... a "get it while you can" mentality. If we have a weather market over Lubbock this year, look out.
I am long Dec. and July cotton calls and hold July puts on the DBA (an agricutlure etf) with the idea that I could conceivably make money both ways by July expiration. I think the grain complex will test old highs. Any failure on any side of the old highs might ignite a correction. I am in agreement that we might
correct into the Spring setting the complex for a weather runup into summer. Then it is anyone's guess as to what happens then.
I appreciate everyone's comments on this forum and look forward to a prosperous, volatile year. Good luck in your trading ventures.
TB | |
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