Fed monetary policy guidance awaited. Korean textile delegation toured Cotton Belt. Wind advisory issued for Texas High Plains ahead of welcome rainfall chances later this week.
Cotton futures settled mixed Tuesday, with most-active July finishing on a modest loss after pushing to a new intraday high for the move by a single point in the first hour of overnight trading.
July closed down 21 points to 63.83 cents, in the lower third of its 125-point range from up 71 points at 64.75 to down 54 points at 63.50 cents. Maturing May lost 131 points to close at 63.46 cents, while December edged up seven points to settle at 62.79 cents.
Major U.S. stock market indexes inched cautiously higher and U.S. dollar index futures traded lower ahead of monetary policy guidance from the Federal Reserve on Wednesday at the conclusion of its two-day meeting. The central bank is expected to leave interest rates steady.
Volume slipped to an estimated 25,411 lots from 27,723 lots the previous session when spreads accounted for 7,224 lots or 26% and EFP six lots. Options volume totaled 2,766 calls and 6,514 puts.
Executives from nine Korean textile companies representing 80% of the countryΆs total cotton consumption have completed a Cotton Belt tour to learn about U.S. cotton production, processing and marketing.
Cotton Council International, export promotions arm of the National Cotton Council, conducted the special trade mission. The Korean executives met with U.S. cotton exporters and producers.
Korea ranks as the sixth largest U.S. export customer thus far this marketing year, having bought 476,000 bales as of April 14.
U.S. market share with the nine participating Korean companies is estimated at 53%, according to CCI. Those mills are expected to consume 1.06 million bales in 2015-16, about 80% of KoreaΆs cotton consumption.
Many Korean mills also have textile investments outside Korea, primarily in Vietnam, and those plants consume about 330,000 bales, of which about 166,000 bales are from the United States.
“We hope this tour will provide these Korean executives with a better appreciation for U.S. cottonΆs superior quality and our industryΆs outstanding reputation for timely delivery so that their desire for using more U.S. cotton will increase,” Keith Lucas, CCI president and a North Carolina cooperative official, said in a report.
The Korean delegation began its tour in New York with a CCI briefing and an Intercontinental Exchange futures seminar. They also looked at cotton research in North Carolina, toured the USDA cotton classing facility in Bartlett, Tenn., and visited a West Texas cotton farm.
Exports are expected to account for 73% of the total market offtake of U.S. cotton this season.
Meanwhile, winds at 25 to 35 miles per hour with some gusts to near 50 MPH were expected to kick up blowing dust on the Texas High Plains Tuesday afternoon. A wind advisory is in effect until 9 p.m. CDT.
A 20% chance for showers and thunderstorms is forecast for the Lubbock area on Thursday, rising to 50% Thursday night and lingering at 20% into Friday. Rainfall would be welcome. The regionΆs traditional optimum cotton planting period opens May 5.
Futures open interest expanded 1,680 lots Monday to 191,412, with MayΆs down 224 lots to 354, JulyΆs up 149 lots to 114,070 and DecemberΆs up 1,638 lots to 61,634. Cert stocks were unchanged at 46,136 bales.
