DTN Cotton Open: Gives Back Some of Prior 2-Day Gains

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May confined within overnight price band. First-day March delivery notices totaled 80 lots. Cash online sales dipped to 22,549 bales, of which 19,109 were grower sales.

Cotton futures ticked lower in early dealings Thursday, giving back some of the prior two-day gains as most-active May remained within the overnight price range.

May slipped 56 points to 79.85 cents, trading within a 57-point range between 79.73 and 80.30 cents after opening Wednesday night at 80.18 cents. Maturing March dipped 62 points to 78.29 cents, trading within a mere 18-point range between 78.67 and 78.85 cents on a turnover of 117 lots.

March drew 80 delivery notices on this first notice day. All were issued by Term Commodities, trading arm of Allenberg Cotton Co. Stoppers were INTL FCStone Securities, 66 or 82.5%; Wells Fargo Securities, eight; and Macquarie Futures USA, six.

The USDA’s weekly export sales-shipments report, usually released on Thursdays, has been delayed a day by the Presidents Day holiday on Monday.

ICE On A Roll

In ICE cotton futures Wednesday, May closed on a triple-digit gain for the second straight day to finish in the upper 25% of the 16.93-cent rally from the October low to the contract high of 84.45 cents on Jan. 12.

The March-May spread traded from 136 to 148 points carry and widened three points to settle at a 148-point premium on May on a volume of 6,748 lots. May-July traded between 88 and 59 points carry and narrowed four points to close at a 71-point July premium on 6,508 lots.

Inverted July-December widened 99 points to settle at a 470-point July premium, trading from 364 to 500 points on 2,586 lots.

Cash Online Cotton Sales Slip A Bit

Cash online sales slipped to 22,549 bales from 41,475 bales on The Seam. Prices averaged 71.37 cents per pound, down from 72.17 cents, with premiums over loan rates rising to an average of 22.46 cents from 21.82 cents. Loan rates averaged 48.91 cents, down from 50.35 cents.

Grower-to-business sales of 19,109 bales brought an average of 70.91 cents per pound, while 3,440 bales of business-to-business sales changed hands at an average of 73.94 cents a pound. Staples 35 or more accounted for 13,228 bales or 69% of the G2B sales and 2,804 or 82% of the B2B sales. Offerings were 114,847 bales.

The grower sales included 2,788 bales from the Southeast, 15,482 bales from the Southwest and 839 bales from the West that sold for per-pound averages of 81, 69.32 and 66.71 cents, respectively. All the business sales were from the Southwest.

World values as measured by the Cotlook A Index gained 185 points to 88.70 cents, widening the premium over the prior-day May futures settlement five points to 9.74 cents.

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