Export sales report eyed. AWP calculated at 44.69 cents, a marketing year low. Red flag warning issued for areas of the Texas Plains.
Cotton futures finished mostly marginally higher Thursday, with most-active May virtually regaining the prior-day loss.
- May edged up 15 points to close at 59.70 cents, in the lower third of its 99-point range from down 14 points at 59.41 cents to up 85 points to a six-session high at 60.40 cents. It matched the high of Feb. 9. May bounced a bit after slumping in the late going to within 11 ticks of the low set in the first few minutes of overnight dealings.
- March, with only two trading sessions left before first notice day, closed up four points to 59.91 cents, July managed a one-point gain to 59.81 cents, and December settled up two ticks to 59.72 cents.
- Volume was estimated at 37,038 lots, a tad below 37,429 lots the previous day when spreads accounted for 23,796 lots or 64%, block trades 1,110 lots, EFP 171 lots and EFS 35 lots. Options volume totaled 1,834 calls and 1,552 puts.
Some estimates on U.S. upland export sales have ranged from 175,000 to more than 250,000 running bales ahead of the weekly report scheduled for release by USDA at 7:30 a.m. CST on Friday. The report has been delayed a day by Monday’s holiday.
Net upland sales for delivery this season were 227,700 RB the prior reporting week ended Feb. 4 and upland shipments were 180,500 RB. The four-week averages are 200,500 RB for sales and 176,800 RB for shipments.
Prices fell to contract lows during the latest reporting week ended Feb. 11. Upland sales for shipment next season were 53,700 RB the prior week and have averaged 34,900 RB the last four weeks.
On the competitive-pricing scene, the average of the five lowest-quoted world cottons for the Far East declined 40 points to 64.44 cents during the week ended Thursday, according to USDA calculations, while the lowest-priced U.S. cotton dropped 70 points to 67.35 cents.
The U.S. premium thus narrowed 30 points to 2.91 cents. The adjusted world price, reflecting transportation and quality differentials, is figured at 44.69 cents for the program week ending next Thursday, down from 45.09 cents and a new crop year low.
This results in a corresponding marketing loan gain of 7.31 cents. The fine count adjustment for 2015-crop qualities better than 31-3-35 is nine points.
On the weather scene, the National Weather Service has issued a red flag warning until 7 p.m. CST Thursday for much of the Texas High Plains and parts of the Rolling Plains.
Breezy southwest winds, low relative humidity and brittle vegetation could create rapid wildfire growth, forecasters say, especially in the western and northern High Plains areas.
Lubbock has received no precipitation this month and only 0.30 of an inch since Jan. 1, compared with a normal of 1.11 inches for the year and with 1.63 inches a year ago.
A high of 86 degrees is expected at Lubbock Thursday afternoon, up from 77 degrees on Wednesday when the thermometer topped the normal date high by 18 degrees. The date record high was 85 degrees in 1970.
Futures open interest grew 3,144 lots Wednesday to 191,429, with MarchΆs down 4,267 lots to 15,277 and MayΆs up 5,857 lots to 110,017. Cert stocks grew 9,375 bales to 59,658. There were 11,311 newly certified bales and 1,936 bales decertified.
