DTN Cotton Open: Trades Mixed in Early Going

Net U.S. weekly upland export sales for this season and next came in at a combined 742,100 RB. Upland shipments of 421,400 RB remained above the pace needed to make the estimate. Cash online sales increased to 6,716 bales on The Seam.

Cotton futures traded mixed in the early going Thursday even as USDA’s weekly export sales report came in above most expectations.

July ticked up 54 points to 84.48 cents, trading within a 131-point range from 83.66 to 84.97 cents on a contract volume of 5,844 lots. May was untraded. December eased nine points to 78.90 cents, trading within a 64-point span between 78.61 and 79.25 cents on a turnover of 1,632 lots.

Net U.S. upland export sales during the week ended last Thursday for shipment this season and next came in at a healthy 742,100 running bales, up from 524,900 RB the prior week.

Sales for 2017-18 beat most expectations at 312,000 RB, up 8% from the previous week and 9% from the prior four-week average, USDA reported. Gross sales were 320,700 RB and cancellations were 8,700 RB. Sales went to 18 countries, led by Turkey, Vietnam, Bangladesh, Indonesia and South Korea.

New-crop sales climbed to 259,300 RB from 229,800 RB the week before, and were primarily for 10 countries, primarily for China, Indonesia and Vietnam.

Upland shipments of 421,400 RB were up 16% from the previous week but down 4% from the prior four-week average. Exports remained above the pace needed to make the USDA estimate. Shipments headed for 26 countries, led by Vietnam, Pakistan, China, Turkey and Indonesia.

Net Pima sales for this season of 6,000 RB increased 22% from the previous week and 11% from the four-week average, while shipments of the extra-long staple cotton of 6,500 RB dropped 30% and 60%, respectively.

In other news, 24 May delivery notices issued on this third day of the notice period brought the total to 75, with SG Americas Securities continuing to issue to Term Commodities.

In ICE cotton futures Wednesday, July rebounded strongly, underpinned by mill on-call fixations to close up 2.98%. July regained much of the prior day’s sharp loss.

The inverted July-December straddle widened 103 points to close on a 495-point July premium after trading between 400 and 548 points on a volume of 3,767 lots, while May’s inverted settlement over July widened seven points to 82 points a spread volume of just 18 lots. December-March traded between an inverted 18 points and 10 points carry and settled at a 5-point December premium from a 12-point March premium on 783 lots.

Cash online sales increased to 6,767 bales from 4,603 bales on The Seam. Prices averaged a gross 64.83 cents per pound, down from 68.54 cents, reflecting premiums over loan rates of 17.50 cents, down from 20.87 cents. Offerings were 103,567 bales.

The Cotlook A Index of world values fell 250 points to 90.70 cents, widening the premium over the prior-day July futures settlement 11 points to 9.19 cents.

In outside markets, Dow Jones Industrial Average futures ticked up 46 points and S&P futures eight points, while U.S. dollar index futures dropped 0.105 to 90.850.

West Texas Intermediate crude oil gained 42 cents to $68.47 and Brent crude added 75 cents to $74.77. June gold traded up $2.30 to $1,325.10. July corn was down 0.13%, July soybeans up 0.38% and July Kansas City wheat down 0.62%.

Asian stocks closed mixed, up 0.47% in Japan’s Nikkei 225, down 1.06% in Hong Kong’s Hang Seng, up 1.1% in South Korea’s Kospi and down 1.35% in China’s Shanghai Composite. India’s Sensex gained 0.62%. European shares traded on the plus side, up 0.09% in Britain’s FTSE 100, 0.1% in Germany’s DAX and 0.46% in France’s CAC 40.

China’s Zhengzhou cotton futures ended slightly higher and prices settled mixed on the China National Cotton Futures.

Weather

Markets

The Latest