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Sept. 6, 1982
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state
Battalion/Page Ip-" ^
September 1,19§
Cotton market demoralized
Contract prices to drop agai
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United Press International
LUBBOCK — Reports of
large yields and carry-overs
have demoralized the cotton
market, and futures contract
prices that began dropping early
this month will continue to fall, a
cotton broker said.
Demands for both domestic
and export cotton are down
since industry experts began
predicting a 1982 carry-over of
6 million bales, said Charlie
McQueen, a broker for Merrill,
Lynch, Pierce, Fenner & Smith
Inc.
“The market seems to be de
moralized,” McQueen said
Monday. “We have a relatively
larger crop than most antici
pated after the crop report was
released two weeks ago.”
The U.S. Department of
Agriculture, in its first report on
Aug. 11, surprised many indus
try experts with a prediction of
2.5 million bales for Texas.
With about two-thirds of the
Texas crop destroyed by hail
and rain storms, many experts
had predicted lower yields,
especially on the High Plains,
where only 3.8 million acres of
cotton were left standing out of
the original 5.7 million planted
acres.
This year’s carry-over of 6
million bales was expected to be
about the same as last year, de
spite a 56 percent decrease from
the 1981 harvest, McQueen
said.
During the period of plant
destruction, June 18 to July 20,
cotton futures rallied up to 74
cents per pound, with the mar
ket anticipating low yields.
“Since that time, we’ve come
back down and made new con
tract lows,” McQueen said. “The
downslide started Aug. 9. Cur
rent December contracts, the
ones most followed in the fu
tures market, are between 65.50
cents and 66 cents (perpou
McQueen said cottongj
are predicting that expi«
prices will remain j
throughout the season,
could drop an additional;
cents per pound.
If dry, Alabama in tall cotton
United Press International
If Alabama’s weather stays
dry long enough for cotton far
mers to bring in their crops, the
1982 harvest should be a record-
breaker, an Auburn University
Extension agronomist says.
Some north Alabama cotton
farmers say a potential record
crop in their part of the state has
been jeopardized by recent
heavy rains.
However, Dr. Louie Chap
man said Monday the rains of
late July and early August have
ensured the best harvest in more
than a decade if the weather
stays dry through October when
the crop is harvested.
“I think overall the heavy
rains have had a good effect,”
Chapman said. “That rain made
us a crop. It looks like the best
crop since 1971, but we do need
good weather now.”
the high humidity and rainfall.
But Chapman said that usually
indicates a bumper harvest.
problem confronting suk
mers if the rain returns ^
the cotton is picked.
The head of the extension
service’s agronomy program
said 320,000 acres in the state
are cotton crops, a decline of ab
out 50,000 acres from last year.
Officials say the average acre
of Alabama cotton will yield 551
pounds of cotton.
Chapman said that could
mean a $120 million harvest.
Some farmers are losing cot
ton to early boll rot because of
“You have that (boll rot) in the
year of a good crop,” he said. “In
other words, if you don’t make
the crop, you don’t have any
thing to rot. We need it to stay
dry from now until around the
first of November when the cot
ton is picked. In fact, it would be
fine if we didn’t see another rain
until then. By the same token,
another rain or two isn’t going to
damage it (the crops). The dam
age comes from long periods of
rainy weather.
Boll rot won’t be the only
If bolls are exposedtoi(
rain, they fail to fluff pi
limiting the effectiv
mechanical picking eaui|
Chapman said. Also, tni
of the cotton suffers w
posed to heavy rain
L
fr
Unii
BOS’
felder s
and try
years o
on the
says he
Rei:
sisted 1
taken i
deathb
defend
from ;
plain a
:er
Before the rains set in
mers were optimistic thn
be able to bring thecropit
ing September. With tht
probaoly pushed back to
oer, there is the a"
threat of an early freta
could damage the plants.
fsvram?;
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