DTN Cotton Open: Holds Onto Slight Gains After Export Data

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U.S. weekly upland export sales came in below expectations at 154,400 running bales and upland shipments were 118,000 RB. Cash online sales declined to 882 bales on The Seam.

Cotton futures kept ticking slightly on the plus side early Friday, regaining some of the prior-day losses even after U.S. weekly export sales came in below some expectations.

December hovered up 22 points to 68.06 cents, trading within a 62-point range between 67.67 and 68.29 cents on a contract volume of 2,397 lots. March ticked up 29 points to 67.66 cents, trading within a 63-point range between 67.23 and 67.86 cents on a turnover of 976 lots.

Net U.S. upland export sales for shipment this season of 154,400 running bales during the week ended Oct. 5 fell 4% from the previous week and from the prior four-week average, USDA reported.

Sales went to 15 countries, headed by Indonesia, Vietnam, China, Turkey, Bangladesh and Taiwan. Gross sales were 155,500 RB and cancellations were 1,000 bales. Sales for shipment next season fell to 9,300 RB from 28,600 RB the prior week.

Upland shipments of 118,000 RB increased 3% from the prior week but were down 11% from the four-week average. Shipments headed to 20 countries, led by Vietnam, China, Indonesia, Mexico and South Korea.

Net Pima sales for shipment this season of 22,000 RB dropped 7% from the prior week and 13% from the four-week average, while shipments of the extra-long staple cotton of 4,300 RB fell 14% and 16%, respectively.

In outside markets, U.S. dollar index futures traded down 0.24 to 92.66, while Dow Jones futures ticked up 30 points and S&P futures up 4.75 points. Crude oil gained 97 cents to $51.57, Brent crude added $1.17 to $57.42 and December gold rose by $5.70 to $1,302.20. December corn was up 0.43%, November soybeans up 0.38% and December Chicago wheat and December Kansas City wheat up 0.29%.

Asian markets closed mostly higher, up 0.96% in Japan’s Nikkei 225, 0.06% in Hong Kong’s Hang Seng, down 0.05% in South Korea’s Kospi and up 0.16% in China’s Shanghai Composite Index. European shares traded mostly higher, down 0.24% in Britain’s FTSE, up 0.18% in Germany’s DAX and up 0.11% in France’s CAC 40.

China’s Zhengzhou cotton futures ended mixed and prices settled on moderate gains on the China National Cotton Exchange.

In ICE cotton futures Thursday, December closed down 1.3% and in the lower reaches of its four-week trading range on the heels of USDA’s supply-demand forecasts. It settled back below its nine-day and 18-day moving averages.

The inverted December-March straddle traded between 34 and 57 points and widened four points to settle at a 47-point December premium on a volume of 5,786 lots. March-May traded between 78 and 68 points carry and widened six points to close at a 76-point May premium on 804 lots. May-July widened seven points to a 55-point July settlement premium on 500 lots.

Cash online sales declined to 882 bales from 2,294 bales on The Seam. Prices averaged 66.49 cents, down from 67.66 cents, and premiums over loan repayment rates dropped to an average of 12.42 cents from 15.36 cents. Loan values on the sales averaged 54.07 cents, up from 52.31 cents.

Grower-to-business sales totaled 867 bales on prices averaging 66.80 cents, while 15 bales of business-to-business sales brought an average price of 48.50 cents. Staples 35 or more made up all but three bales of the G2B sales and all of the B2B sales.

The Cotlook A Index of world values eased 10 points to 78.70 cents, widening the premium over the prior-day December futures settlement 12 points to 9.97 cents.

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