Cotton is higher on Aussie floods.

In Grain Futures | Market Analysis | Softs Futures
by John Flanagan at 9:48 am on February 3, 2012

Cotton prices gained on Thursday and are trading 200 points higher this morning. Australia has received flooding rains in Queensland and New South Wales, key cotton growing areas. Early estimates expect a 10% loss, or more, to their cotton crop. The USDA carries Australia at 5 million bales. USDA will likely reduce Australia’s crop a little in next Thursday Supply/Demand report just to show direction and then wait till next month to refine their estimate. The Aussie rains are attributed to the La Nina weather pattern that is currently scorching Texas and Georgia’s cotton areas. Today, the US Dollar Index is up 24 points at 79.35. Crude oil is up 42 cents at $96.77. March soybeans were up 7 cents overnight at $12.24. March corn was up 1 ¼ cents overnight at $6.44 ¼. March wheat was up 5 ½ cents overnight at $6.68 ¼. The wheat market is watching Europe, Russia and Ukraine where subzero temps are causing winterkill to the wheat crops there.

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