DTN Morning Cotton Commentary 02/16 08:29
Cotton Ticks Marginally Lower in Quiet Trade
Most-active May positioned for weekly loss. Cash online sales declined to
8,111 bales, of which 6,743 bales were grower sales. Spot quotes basis rolled
By Duane Howell
DTN Cotton Correspondent
Cotton futures ticked marginally lower in quiet early dealings Friday, with
most-active May trading within the previous-session range.
May hovered off eight points to 76.69 cents, trading within a 69-point range
between 76.47 and 77.16 cents on a contract volume of 3,638 lots. It closed
last Friday at 77.63 cents.
Soon-to-mature March, where first notice day arrives Thursday, ticked down
nine points to 75.32 cents, trading within a 64-point band between 75.13 and
75.77 cents on a turnover of 1,077 lots.
The cotton market will be closed Monday for Presidents Day.
In outside markets, U.S. dollar index futures traded up 0.315 to 88.820,
while Dow Jones Industrial Average futures ticked up 3 points and S&P up 0.50
Oil prices maintained this week's gains. West Texas Intermediate crude
gained 16 cents to $61.15 and Brent crude added 30 cents to $64.63. April gold
rose by $2.90 to $1,358.20. March corn was flat, March soybeans up 0.12%, March
Chicago wheat up 0.81% and March Kansas City wheat up 0.47%.
Asian stocks closed higher, up 1.19% in Japan's Nikkei 225 and 1.11% in
South Korea's Kospi. India's Sensex was up 0.84%. European shares were trading
higher, up 0.66% in Britain's FTSE 100, 0.63% in Germany's DAX and 0.97% in
France's CAC 40.
China's stock and cotton markets remained closed for the Lunar New Year
In ICE cotton futures Thursday, March extended a losing streak to four
sessions in a row and eight of the last ten, settling on a new low close below
lows of the prior seven weeks.
The March-May spread traded between 139 and 127 points carry and narrowed a
point to close at a 136-point May premium on a volume of 6,414 lots. May-July
traded between 103 and 93 points carry and narrowed four points to close at a
99-point July premium on 3,397 lots.
Inverted July-December narrowed nine points to finish at a 227-point July
premium, trading between 226 and 278 points on 1,976 lots.
Cash online sales declined to 8,111 bales from 10,363 bales on The Seam.
Prices averaged 67.91 cents, down from 71.90 cents, with average premiums over
loan rates falling to 19.96 cents from 21.07 cents. Loan values averaged 48.85
cents, down from 50.85 cents. Offerings were 158,356 bales.
Grower-to-business sales of 6,743 bales brought prices averaging 66.99
cents, while 1,368 bales changed hands on the business-to-business platform at
an average of 72.48 cents.
The G2B sales included 6,645 bales from the Southwest and 98 bales from the
West. All the B2B sales were from the Southwest. Staples 35 or more accounted
for 4,223 bales or 63% of the grower sales and 1,311 bales or 96% of the
The USDA rolled the spot quotations basis on the base quality to May at 50
points off in the Southeast, 200 points off in the Delta, 602 points off in
East Texas-Oklahoma, 677 points off in West Texas, 525 points off in the Desert
Southwest and 450 points off in the San Joaquin Valley.
World values as measured by the Cotlook A Index fell 50 points to 86.85
cents, widening the premium over the prior-day May futures settlement seven
points to 9.88 cents.
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