Agfax Buzz:
    July 3, 2014

    DTN Cotton Close: Settles Midrange on New Low

    AgFax.Com - Your Online Ag News Source

    By Duane Howell DTN Cotton Correspondent

    U.S. export commitments remained around 105% of the USDA estimate and shipments reached about 95%. Stock market indexes hit record marks on strong jobs report.

    Cotton futures fell to yet another new low close for the move in benchmark December Thursday, finishing with the fourth weekly loss in a row and the eighth in the last nine weeks.

    December closed the holiday-shortened trading week off 41 points at 72.06 cents, in the middle of its 110-point range from up 15 points at 72.62 to down 95 points at 71.52 cents. It lost 279 points for the week and settled at the lowest close on its weekly chart since early June 2012.

    Volume slowed to an estimated 12,100 lots from 14,532 lots the previous session when spreads totaled 4,669 lots or 32% and EFP 32 lots. Options volume totaled 3,430 calls and 2,846 puts.

    Net U.S. all-cotton weekly export sales of 41,500 running bales during the week ended June 26, up from 4,600 bales the previous week, brought 2013-14 commitments to 10.714 million bales.




    Commitments remained around 105% of the USDA estimate, compared with nearly 107% a year ago and a five-year average for upland cotton of about 108%. A tight old-crop balance sheet will affect the size of unshipped old-crop sales carried into the new marketing year.

    Net sales for delivery next season climbed to 59,800 running bales from 24,100 bales, boosting 2014-15 commitments to 2.429 million bales. New-crop bookings are 390,000 bales ahead of forward sales a year ago.

    New-crop commitments have reached about 26% of USDA’s 2014-15 export forecast. A year ago, forward bookings totaled about 20% of the current 2013-14 export estimate.

    All-cotton shipments of 175,100 running bales, up from 138,100 bales the previous week, lifted the total for the season to 9.66 million bales. Shipments are about 95% of the USDA estimate, about the same as the percentage of final exports a year ago.

    Shipments lagged 2.353 million running bales or about 20% behind exports a year ago. Outstanding sales have declined to 1.054 million bales, compared with 1.456 million last year.

    To achieve the USDA estimate, all-cotton shipments need to average roughly 131,400 running bales a week.

    Meanwhile, a holiday-shortened session on Wall Street ended with multiple records as the Dow Jones Industrial Average topped 17,000 for the first time after the June nonfarm payrolls report came in much stronger than expected.

    U.S. employers added 288,000 jobs in June, the Bureau of Labor Statistics said. The data came a day earlier than usual because of the Fourth of July holiday.

    The unemployment rate fell to 6.1% in June. Economists had expected the addition of 215,000 jobs last month and the unemployment rate to remain steady at 6.3%.

    Futures open interest dipped 47 lots Wednesday to 146,189, with July’s down one lot to 1,889 and December’s down 624 lots to 120,295. Cert stocks grew 1,243 bales to 462,584. There were 2,522 newly certified bales, 1,279 bales decertified and 17,790 bales awaiting review.

    World values as measured by the Cotlook A Index fell 100 points Thursday morning to 87.40 cents. The premium to Wednesday’s July futures settlement narrowed 61 points to 10.71 cents.

    Forward A Index values for 2014-15 dropped 90 points to 80.10 cents, narrowing the discount to the 2013-14 index by 10 points to 7.30 cents and widening the premium to Wednesday’s December futures close by three points to 7.63 cents.


    Tags: , , , , ,

     
    Copyright DTN. All rights reserved. Disclaimer.
    Powered By DTN

    Leave a Reply

    Name and Email Address are required fields. Your email will not be published or shared with third parties.

    Sunbelt Ag News

      Cleveland on Cotton: Heavy Hat Sitting on 67-68 Cent Mark08-22

      Rice Crop: Harvest Progresses in Texas, Louisiana; Arkansas Farmers Unpaid08-22

      Rose On Cotton: Positive Signs, Mostly08-22

      Rice Market: Futures Push to New High Before Hit with Selling Pressure08-22

      Peanuts – Drought, Dry-Weather Pests Persist in Lower Southeast – AgFax08-22

      Southern Soybeans – Midsouth Harvest Widens – AgFax08-22

      Grain TV: High Wheat Exports, Sky Rocketing Soy Basis08-22

      Rice Harvest Starts In Arkansas, Barely – AgFax08-22

      Cotton In Midsouth – Bollworms Build – AgFax08-22

      DTN Livestock Close: Cattle Futures End Week With Short-Covering Rally08-22

      Mississippi Hunting: Plant Proper Fields for Upcoming Dove Season08-22

      AFB Grain-Soybean Close: Ukraine Conflict Again Boosts Prices08-22

      AFB Cotton Close: Higher in Narrow Trade08-22

      AFB Rice Close: Futures Unchanged to Lower08-22

      DTN Cotton Close: October Leads Rally Higher08-22

      Taxes: Donating Crops Can Mean Substantial Tax Savings08-22

      DTN Grain Close: Markets Ignore the Bear, Climb Higher08-22

      Georgia Peanut Commission Promotes Consumption Through Sporting Events08-22

      USDA: Peanut Price Highlights08-22

      Georgia: Pecan Growers Association Field Day, Tifton, Sept. 408-22

      Mississippi Soybeans: Growers Anticipate Record Yield08-22

      DTN Livestock Midday: October Live Cattle Futures Push Higher08-22

      DTN Grain Midday: Trade Still Higher Across Board08-22

      Farming on the Mother Road: Change is Operative Word in New Mexico – DTN08-22

      Mississippi: Cool-Season Food Plots Benefit Wildlife, Diversity08-22