March still positioned for ninth weekly gain in a row. Cash online sales increased to 33,941 bales, including 26,273 bales sold by growers. Cotton futures opened lower overnight and have yet to make it to the plus side in early dealings Friday ahead of a long three-day weekend.
March hovered off a slight 37 points to 77.57 cents, trading within an 88-point range from 77.05 to 77.93 cents on a contract volume of 3,885 lots. It remained positioned for its ninth weekly gain in a row, having settled last Friday at 75.92 cents. May ticked down 32 points to 77.64 cents, trading within an 87-point span from 77.09 to 77.96 cents on a turnover of 1,280 lots.
ICE cotton futures will be closed Monday in observance of Christmas and will reopen at 7 a.m. CST on Tuesday.
In ICE cotton futures Thursday, March surged to a new contract high and settled near the high, up 2.95%, on the back of another round of robust U.S. weekly export sales and visions of improving long-range demand under the tax cuts approved this week by Congress.
The March-May spread traded between 45 points of carry and a 3-point inversion and narrowed 39 points to settle at a 2-point May premium on a volume of 5,583 lots. May-July traded between 56 and 11 points carry and narrowed 35 points to close at a 21-point July premium on 2,271 lots.
Cash online sales increased to 33,941 bales from 17,956 bales on The Seam. Prices rose to an average of 71.56 cents from 69.20 cents, reflecting gains to an average of 20.73 cents from 19.08 cents in premiums over loan rates. Loan values averaged 50.82 cents, up from 50.12 cents. Offerings were 108,898 bales.
Grower-to-business sales quickened to 26,273 bales on an average price of 71.28 cents per pound, while business sales climbed to 7,668 bales on prices averaging 72.50 cents. he G2B sales, all from the Southwest, included 22,215 bales or 85% of staples 35 or more, which made up 6,362 bales or 83% of the B2B sales.
The business sales included 1,469 bales from the Southeast that sold for an average of 78.11 cents and 6,199 bales from the Southwest that brought an average of 71.17 cents.
World values as measured by the Cotlook A Index gained 75 points to 86.50 cents, widening the premium over the prior-day March futures settlement seven points to 10.79 cents.
In outside markets, U.S. dollar index futures ticked up 0.105 to 92.965, while Dow Jones Industrial Average futures ticked around little changed and S&P futures inched up 0.25 point. There was relief that Congress averted a government shutdown on Thursday, one day before federal funding was due to expire.
West Texas intermediate crude dropped 60 cents to $58.01 and Brent Crude dipped 35 cents to $64.55, still not far off recent highs. February gold traded up $1.10 to $1,271.17. March corn was up 0.07%, March soybeans up 0.36%, March Chicago wheat up 0.06% and March Kansas City wheat up 0.12%.
Asian stocks closed mostly higher, up 0.16% in the Nikkei 225, 0.72% in Hong Kong’s Hang Seng, up 0.44% in South Korea’s Kospi and down 0.08% in China’s Shanghai Composite Index. India’s Sensex gained 0.55%. European shares were trading lower, down 0.15% in Britain’s FTSE 100, 0.31% in Germany’s DAX and 0.45% in France’s CAC 40.
China’s Zhengzhou cotton futures ended on gains and prices settled mostly higher on the China National Cotton Exchange. India’s MCX cotton futures rose strongly and crop prices rose again as arrivals were steady.Πηγή: Agfax