Cotton futures settled mixed Friday as spot July, the only loser, settled with a modest loss and a new low close for the move.
July, down five sessions in a row and nine of the last 11, settled down 29 points to 81.49 cents, around the lower third of its 134-point range from up 60 points at 82.38 cents to down 74 points at 81.04 cents. This was its lowest close since Jan. 28 when it settled at 80.97 cents.
December edged up 13 points to close at 83.77 cents, in the upper quarter of its 97-point range from down 62 points at 83.02 cents to up 35 points at 83.99 cents. March closed up 23 points to 83.58 cents.
For the week, the market lost 492 points in July, 213 points in December and 209 points in March. Volume slowed to an estimated 24,300 lots from 34,568 lots the previous session when spreads totaled 9,037 lots and EFP 403 lots. Options volume totaled 5,223 calls and 4,192 puts.
Rainfall overnight was generally disappointing on official gauges in the main Texas High Plains cotton area, though Big Spring in Howard County reported 1.97 inches. Some locally heavy rains fell in the Rolling Plains below the Caprock where Snyder in Scurry County recorded 4.5 inches and Jayton in Kent County got 3 inches. However, less than a third of the 38 National Weather Service cooperative sites in the Lubbock area reported measurable rainfall.
Sites other than those three — also mostly in the Rolling Plains — reported 0.02 of an inch to 0.63-inch. Rain chances in the Lubbock area are rated at 30% this afternoon and tonight, with the best chances again forecast for the Rolling Plains. Slight chances linger daily through much of next week.
Planting gained momentum this week with daytime high temperatures mostly in the 90-degree area. Cotton has been emerging in irrigated fields. Many producers have decided to cut back on their irrigated acreage to make better use of limited water resources on fewer acres.
Meanwhile, domestic mill buyers inquired for a heavy volume of 2013-crop cotton, color 41 and better, leaf 4 and better and staple 34 for November through September 2014 delivery, according to the cotton division of USDAΆs Agricultural Marketing Service. No sales were reported.
Reports indicated the earliest load-out dates at many warehouses were five to six weeks out. Demand through export channels was described as moderate.
Indonesian mill buyers purchased a moderate volume of color 31, leaf 3 and staple 36 for nearby shipment. Agents for mills throughout the Far East continued to inquire daily for any discounted styles of cotton.
Futures open interest fell 3,426 lots Thursday to 187,036, with JulyΆs down 4,940 lots to 116,603 and DecemberΆs up 1,322 lots to 65,592.
For the week, the board total gained 1,571 lots. Certificated stocks grew 1,387 bales to 511,235, up 2,090 bales on the week. Awaiting review were 1,700 bales.
World values as measured by the Cotlook A Index fell 140 points Friday morning to 90.10 cents.
The index premium to ThursdayΆs July futures settlement widened 24 points to 8.32 cents, up from 7.37 cents a week ago.
