DTN Cotton Open: Ticks Lower in Early Going

May traded below the previous-session low and is positioned for a weekly loss. Cash online sales slowed to 4,559 bales on The Seam.

Cotton futures ticked lower in early dealings Friday, positioned for weekly losses with spot May dropping below the previous-session low.

May hovered off 84 points to 82.69 cents, trading within a 128-point range from the overnight opening and session high at 83.70 to 82.42 cents on a contract volume of 2,856 lots. It closed last Friday at 84.52 cents and has posted three weekly gains in a row.

July ticked down 81 points to 82.79 cents, trading within a 118-point range from 83.75 to 82.57 cents on a turnover of 1,107 lots, and December dipped 29 points to 77.90 cents, confined to a 48-point range from 78.25 to 77.77 cents on 410 lots.

In In ICE futures Thursday, May settled on a fractional nine-point gain, remaining within the prior-day range for a second straight session after falling at Tuesday’s low to within 33 points of the March 6 bearish reversal low.

The May-July spread traded from 22 points May/over to nine points July/over and settled at a seven-point July premium from a 24-point May premium on a volume of 3,319 lots. Inverted July-December traded between 481 and 549 points and widened 23 points to close at a 541-point July premium on 990 lots. December-March settled flat at an 18-point March premium for the third consecutive session on 266 lots.

Cash online sales slowed to 4,559 bales from 9,638 bales on The Seam. Prices rose to an average of 74.61 cents from 73.73 cents, reflecting gains to 25.44 cents from 23.80 cents in average premiums over loan rates. Offerings were 92,347 bales.

The Cotlook A Index of world values gained 50 points to 92.85 cents, widening the premium over the prior-day May futures settlement four points to 9.41 cents.

In outside markets, U.S. dollar index futures dipped 0.165 to 89.515, while Dow Jones Industrial average futures edged up 20 points and S&P futures up 3.75 points. Continuing Washington turmoil kept markets on edge amid trade war concerns and political drama.

West Texas Intermediate crude oil traded up 16 cents to $61.35 and Brent crude added 11 cents to $65.23. April gold gained $1.40 to $1,319.20. May corn was down 0.39%, May soybeans up 0.46% and July Kansas City wheat down 1.7%.

Asian stocks closed mostly lower, down 0.58% in Japan’s Nikkei 225, 0.12% in Hong Kong’s Hang Seng, up 0.06% in South Korea’s Kospi and down 0.63% in China’s Shanghai Composite. India’s Sensex fell 1.51%. European shares were trading higher, up 0.15% in Britain’s FTSE 100, 0.25% in Germany’s DAX and 0.17% in France’s CAC 40.

China’s Zhengzhou cotton futures closed with additional losses and prices ended mostly with losses on the China National Cotton Exchange. India’s MCX cotton futures dropped and S-6 prices were steady.

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