DTN Cotton Open: Extends Prior Day’s Losses

©Debra L Ferguson Stock Photography

Nearby contracts traded below Monday’s Lows. Cash online trading increased to 9,558 bales on The Seam, including 8,431 bales of grower sales.

Cotton futures traded lower in the early going Tuesday, extending the previous session’s losses and ticking near the day’s lows.

March hovered off 46 points to 75.98 cents, trading within a 59-point range from 76.50 to 75.91 cents on a contract volume of 3,243 lots. May ticked down 38 points to 77.07 cents, trading within a 53-point range from 77.54 to 77.01 cents on a turnover of 4,649 lots. Both traded below Monday’s lows.

 

In ICE cotton futures Monday, March reversed off a probe above Friday’s high to close on a slight loss, failing to overcome nearby resistance now seen at Thursday’s high of 77.52 cents.

The March-May spread traded between 106 and 70 points of carry and widened five points to a 100-point May premium on a volume of 18,798 lots. May-July traded between 99 and 90 points carry and widened four points to settle at a 99-point July premium on 6,467 lots.

Inverted July-December narrowed 36 points to settle at a 270-point July premium, trading between 260 and 331 points on 2,980 lots.

Cash online trading increased to 9,558 bales from 7,064 bales on The Seam. Prices fell to an average of 69.01 cents from 71.01 cents, reflecting a drop to an average of 19.95 cents from 20.56 cents in premiums over loan rates. Loan values averaged 49.05 cents, down from 50.46 cents. Offerings were 163,222 bales.

Grower-to-business sales of 8,431 bales brought an average price of 68.82 cents per pound, while business-to-business sales of 1,127 bales brought an average of 70.42 cents. The grower sales included 8,017 bales from the Southwest and 414 bales from the West. All the business sales were from the Southwest.

taples 35 or more accounted for 69% of the G2B sales — including 5,542 bales of those from the Southwest and 257 bales of those from the West — and 82% of the B2B sales. The grower sales from the Southwest sold for an average of 68.70 cents and those from the West for 71.10 cents.

World values as measured by the Cotlook A Index gained 15 points to 87.55 cents, widening the premium over the previous-session March futures settlement nine points to 10.87 cents.

In outside markets, U.S. dollar index futures traded down 0.435 to 89.660, while Dow Jones Industrial Average futures ticked down 109 points and S&P futures down 10.25 points after two days of strong gains.

West Texas Intermediate crude oil traded down 56 cents to $58.73 and Brent crude dropped 25 cents to $62.32. April gold gained $2.20 to $1,328.60. March corn was flat, March soybeans up 0.3%, March Chicago wheat down 0.22% and March Kansas City wheat up 0.1%.

Asian stocks closed mostly higher, down 0.65% in Japan’s Nikkei 225, up 1.29% in Hong Kong’s Hang Seng, up 0.41% in South Korea’s Kospi and up 1% in China’s Shanghai Composite Index. European shares were trading mixed, up 0.25% in Britain’s FTSE 100, down 0.16% in Germany’s DAX and 0.11% in France’s CAC 40.

China’s Zhengzhou cotton futures closed mixed and prices ended mostly lower on the China National Cotton Exchange.

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