DTN Cotton Open: Ticks Narrowly Mixed in Early Going

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Net upland weekly export sales came in at 153,300 RB for this season and 229,300 RB for next season. Shipments dipped to 422,700 RB, still above the pace needed to make the estimate. Cash grower sales increased to 6,743 bales on an average of 69.06 cents per pound on The Seam.

Cotton futures ticked narrowly mixed in early dealings Thursday as traders digested USDA’s weekly export sales-shipments report.

July eased six points to 84.29 cents, trading within a 68-point range between 84.05 cents and 84.73 cents on a contract volume of 3,642 lots. It was the only contract in the minus column. December inched up four points to 80.73 cents, trading within a 66-point range between 80.37 cents and 81.03 cents on a turnover of 4,513 lots.

Net U.S. upland export sales of 153,300 running bales for shipment this season fell 21% from the previous week and 38% from the prior four-week average during the week ended last Thursday.

Gross sales were 188,300 RB and cancellations increased to 35,000 RB. Sales went to 15 countries, headed by Vietnam, Indonesia, Turkey, Pakistan and South Korea. Commitment reductions included 2,200 RB for Japan and 2,200 RB for Egypt.

Upland net sales for next season of 229,300 RB, up a bit from 228,600 RB the week before, brought the total for both crop years to 382,600 RB. New-crop sales went to 13 countries and were primarily for Indonesia, Vietnam, China and South Korea, partially offset by reductions of 1,100 RB for the Philippines.

Upland shipments of 422,700 RB dropped 17% from the prior week and 2% from the four-week average but remained above the pace needed to make the USDA estimate. Shipments went to 27 countries, headed by Vietnam, Turkey, China, Pakistan and Bangladesh.

Pima net sales of 2,100 RB for this season fell 38% from the previous week and 67% from the four-week average, while shipments of the extra-long staple cotton rose 13% and 22%, respectively.

In ICE cotton futures Wednesday, July extended the prior-day rally off a support area, underpinned by mill fixations, rallying to a triple-digit gain and a four-session high before running out of buyers and closing on a moderate gain in the lower half of the session range.

The inverted July-December straddle traded between 352 and 416 points and widened a point to settle at a 366-point July premium on a volume of 5,115 lots. December-March traded between an inverted five and 28 points, and settled unchanged at a 20-point December premium on 2,580 lots.

Cash online grower-to-business sales increased to 6,743 bales on prices averaging 69.06 cents per pound on The Seam, while business-to-business sales slowed to 1,540 bales and brought an average 67.02 cents a pound. Staples 35 or more accounted for 5,175 bales or 77% of the G2B sales and 1,236 bales or 80% of the B2B sales. All the cotton was from the Southwest. Offerings were 71,502 bales.

The Cotlook A Index of world values dipped 5 points to 92.05 cents, narrowing the premium over the prior-day July futures settlement 11 points to 8.29 cents.

In outside markets, Dow Jones Industrial Average futures traded down 12 points and S&P down 3 points, while U.S. dollar index futures inches up 0.01 to 93.290.

West Texas Intermediate crude oil gained 46 points to $71.95 and Brent crude added 63 cents to $79.91. June gold dropped $1.20 to $1,290. July corn was up 0.5%, July soybeans up 0.53% and July Kansas wheat up 1.7%.

Asian stocks closed mixed, up 0.53% in Japan’s Nikkei 225, down 0.46% in South Korea’s Kospi and down 0.5% in China’s Shanghai Composite. European shares traded higher, up 0.2% in Britain’s FTSE 100, 0.26% in Germany’s DAX and 0.41% in France’s CAC 40.

China’s Zhengzhou cotton futures and prices on the China National Cotton Exchange closed on additional gains. India’s MCX cotton futures were lower.

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