U.S. weekly upland export sales came in at 321,400 RB for this season and 199,200 RB for next season, while upland shipments slipped to 414,400 RB but topped the four-week average. Cash online sales rose to 9,638 bales on The Seam, of which 5,151 bales were grower sales.
Cotton futures traded lower in early dealings Thursday, even though U.S. export weekly sales came in within a range of predominant expectations.
May hovered off 64 points to 82.78 cents, trading inside the prior-day range within a 111-point band from 83.76 to 82.65 cents on a contract volume of 3,204 lots. July ticked down 37 points to 82.83 cents, trading within an 88-point range from 83.59 to 82.71 cents on a turnover of 845 lots, and December dipped 18 points to 77.84 cents, trading within a 49-point range from 78.25 to 77.76 cents on 686 lots.
Net upland export sales for shipment this season of 321,400 running bales during the week ended last Thursday dropped 16% from the previous week and 11% from the prior four-week average, USDA reported.
Sales went to 20 countries, led by Vietnam, Indonesia, Brazil, Turkey and China. Gross sales were 331,800 RB and cancellations were 10,400 RB. Commitment reductions were reported for Japan and unknown destinations.
Upland net sales for 2018-19 of 199,200 RB, down from 252,100 RB the prior week, brought sales for both crop years to 520,600 RB. New-crop sales went to 10 countries, mainly to Vietnam, Bangladesh and Indonesia.
Upland shipments of 414,400 RB fell 21% from the previous week but rose by 14% from the four-week average. Shipments went to 23 countries, headed by Vietnam, China, Pakistan, Indonesia and Turkey.
Net Pima sales of 7,400 RB for 2017-18 fell 18% from the previous week but were up 42% from the four-week average, while shipments of 24,500 RB slipped 6% but increased 30%, respectively.
In ICE cotton futures Wednesday, May settled on a slight 47-point gain, trading indecisively inside the prior-day range. It remained below its nine-day moving average after snapping a string three straight losing sessions totaling 214 points.
The May-July spread traded between two points carry and an inverted 39 points and widened 12 points to close on a 24-point May premium on 3,013 lots. Inverted July-December traded between 450 and 530 points and widened eight points to settle at a 518-point July premium on 1,714 lots. December-March finished flat at an 18-point March premium on 343 lots.
Cash online sales increased to 9,638 bales from 6,491 bales on The Seam on prices averaging 73.72 cents, up from 70.20 cents. Premiums over loan rates averaged 23.80 cents, up from 23.09 cents. Offerings were 87,578 bales.
Grower-to-business sales of 5,151 bales brought an average of 69.88 cents per pound, while business-to-business sales of 4,487 bales brought an average of 78.14 cents. Staples 35 or more made up 4,376 bales or 85% of the G2B sales and 3,199 bales or 71% of the B2B sales.
All the grower sales came from the Southwest. The business sales included three bales from the West that stapled 34 or less and sold for an average of 71.80 cents a pound. All the other B2B sales were from the Southwest and went for 78.14 cents a pound.
The Cotlook A Index of world values dropped 25 points to 92.35 cents, widening the premium over the prior-day May futures settlement five points to 9.37 cents and reflecting a 17.14-cent margin over the four-day average AWP calculation.
In outside markets, June U.S. dollar index futures traded up 0.185 to 89.410, while Dow Jones Industrial Average futures ticked up 875 points and S&P futures up 4.50 points.
West Texas Intermediate crude oil gained 41 cents to $61.37 and Brent crude added 23 cents to $65.12. April gold gained $6.60 to $1,319. May corn was up 0.51%, May soybeans up 0.94% and July Kansas City wheat up 0.2%.
Asian stocks closed higher, up 0.12% in Japan’s Nikkei 225, o.34% in Hong Kong’s Hang Seng, 0.2% in South Korea’s Kospi and 0.01% in China’s Shanghai Composite. India’s Sensex gained 0.44%. European share traded up 0.03% in Britain’s FTSE 100, up 0.23% in Germany’s DAX and 0.17% in France’s CAC 40.
China’s Zhengzhou cotton futures and prices on the China National Cotton Exchange settled on mostly losses.
Source: Agfax