Kentucky Corn

Spot quotations averaged 87 points lower than the previous week, according to the USDA, Agricultural Marketing Service’s Cotton and Tobacco Program. Quotations for the base quality of cotton (color 41, leaf 4, staple 34, mike 35-36 and 43-49, strength 27.0-28.9, and uniformity 81.0-81.9) in the seven designated markets averaged 121.80 cents per pound for the week ending Thursday, August 25, 2022.

More reports are coming in of an average to above average crop, which is great news for mills looking for head rice, and producers looking for yields. The domestic business remains steady, and the boost from Iraq is just what the mills need to keep busy through the balance of the calendar year. Prices on the ground for spot prices have remained consistent, which provides a nice backdrop for producers moving through harvest in Louisiana and Texas.

This week we’ll shift our attention to November rice futures. Over the past week, open interest has been evaporating fast in the September contract. This exit is typical in the few weeks ahead of First Notice Day. For the September contract, First Notice Day is next Wednesday, August 31. To avoid taking physical delivery of a commodity, a trader needs to be out of a long (buy) position by the close of the day prior to First Notice Day.