DTN Closing Cotton 03/22 14:53
Cotton Eases Back a Second Day
May cotton closed down 0.44 cent Thursday, pulling back a second day as
outside concerns of a falling stock market and trade issues with China
countered bullish concerns of adverse weather. Extreme drought in northern
Texas remains a concern for 2018 production.
By Todd Hultman
May cotton prices pulled back a second day on Thursday, closing down 0.44
cent at 82.15 cents on light volume. The market is dealing with ongoing
concerns of extreme drought in northern Texas and too much rain around the
Mississippi Delta, while southern Georgia remains on the dry side. Thursday's
seven-day forecast only adds fuel to those concerns, with warmer temperatures
quickly evaporating any light precipitation on the way to northern Texas, while
more heavy rains are headed to the Mississippi Delta. U.S. cotton export sales
are doing well in 2017-18, provided they are shipped before Aug. 1. USDA's next
weekly report will be released Friday morning, due to this week's winter storm
in the eastern U.S.
Technically speaking, May cotton remains in an uptrend with overwhelming
support from noncommercial buyers, seen as 90% long in the CFTC's most recent
report for Mar. 13. That degree of bullishness among speculators remains a
bearish concern, should May prices fall below support at 76.44 cents.
The ICE daily stocks report showed certified stocks down 6,543 on Wednesday
In cash online trading, The Seam showed 8,436 bales sold Wednesday at an
average price of 66.28 cents. Average loan value was 45.90 cents and 91,970
bales were offered.
The Cotlook A Index of world values for Wednesday, Mar. 21 was up 1.70 cents
to 92.45 cents, putting the premium over the May futures settlement at 9.86
Todd Hultman can be reached at email@example.com
Follow Todd Hultman on Twitter @ToddHultman1
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