Cotton Slips Amid Slower China PMI Data
May delivery notices expected to be posted tonight. U.S. planting progress lagged at 10%. Cash business sales resumed on The Seam.By Duane Howell DTN Cotton Correspondent
Cotton futures slipped to slight losses Tuesday, retreating from overnight gains amid weak data on the Chinese economy, on this last trading day ahead of first notice day for May deliveries.
Most-active July hovered off 26 points to 85.89 cents at 8:12 a.m. CDT, trading within a tight 59-point range from 86.25 to 85.66 cents on a contract volume of 2,301 lots.
The May contract traded off 41 points to 83.92 cents on a volume of 717 lots and December fell 29 points to 85.90 cents on a turnover of 1,001 lots.
Recent rolling from and liquidation in the May contract are expected generally to result in light delivery notices, but stocks in deliverable position are large. Notices are expected to be posted tonight.
In the news, the HSBC preliminary purchasing managers’ index for China came out at 50.5 for April, compared with a final reading of 51.6 for March, indicating slower growth in manufacturing in the world’s second largest economy and largest cotton consumer.
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