Traders kept an eye on forecasts for rain on the dry Texas High Plains. ChinaΆs imports through the first nine months of the 2013-14 marketing year fell 37.3% from a year earlier.
Cotton futures finished slightly lower Tuesday as traders kept an eye on weather forecasts for the long holiday weekend just ahead.
Spot July eased off 15 points to close at 89 cents, in the lower third of its 103-point range from up 59 points at 89.74 to down 44 points at 88.71 cents. It posted its lowest intraday price since March 6 and a new low close on its daily chart since March 5.
December settled off 13 points to 81.92 cents, trading within a tight 56-point range from 82.30 to 81.74 cents. It traded inside the prior-day range, considered at times a sign of indecision.
Volume totaled an estimated 17,300 lots, against 17,423 lots the previous session when spreads totaled 4,937 lots or 28% and EFP 27 lots. Options volume totaled 2,398 calls and 4,552 puts.
Chances for showers and thunderstorms are expected to expand slowly from west to east from Wednesday through the Memorial Day weekend in the prime cotton area of the dry Texas High Plains.
A few strong to severe thunderstorms are expected to be confined mainly to the western and northern areas on Wednesday. Rainfall chances at Lubbock are rated at 20% Thursday, improving to 40% Thursday night and again Friday. Chances then will linger through Monday.
Hot, breezy conditions were forecast to pose fire weather danger in much of the Plains Monday afternoon. The high temperature at Lubbock was forecast at 99 degrees, up from the normal of 85 degrees.
The Amarillo area has chances for showers and thunderstorms rated at 20% Wednesday, 30% Thursday, 40% Friday and Saturday and then 20% through Monday. Widespread severe weather isnΆt expected, though damaging winds and large hail may be possible with the strongest storms.
Meanwhile, ChinaΆs cotton imports totaled 224,000 metric tons in April (1.029 million bales), up slightly from March, according to preliminary customs data.
This brought the total for the first nine months of the 2013-14 marketing year to 2.384 million tons (10.95 million bales), down 31.3% from 3.472 million tons (15.945 million bales) imported through the corresponding period last season.
In its supply-demand estimates earlier this month, USDA raised its forecast of ChinaΆs imports by 750,000 bales from its April projection to 12.75 million, down 7.58 million bales or 37.3% from 2012-13.
The increased USDA estimate on the month was attributed to recent activity and the issuance of import licenses. China, the worldΆs top cotton importer, is projected to cut its 2014-15 imports to 8.5 million bales under its revamped cotton policy.
Futures open interest edged up 233 lots Monday to 189,295, with JulyΆs down 424 lots and DecemberΆs up 544 lots to 69,354. Cert stocks grew 2,316 bales to 413,498. There were 2,391 newly certified bales, 75 bales decertified and 6,468 bales awaiting review.
World values as measured by the Cotlook A Index dropped 30 points Tuesday morning to 92.15 cents. The premium to MondayΆs July futures settlement widened 37 points to 3 cents.
Forward A Index values for 2014-15 slipped 25 points to 89.45 cents, narrowing the discount to the 2013-14 index by five points to 2.70 cents and widening the premium to MondayΆs December futures close by five points to 2.70 cents.
