Cotton Futures Trade Lower
Net U.S. all-cotton weekly export sales came in at 118,600 bales for shipment this season and 84,000 bales for delivery next season. Shipments fell to 297,700 bales. Cash sales confined to business side on The Seam.By Duane Howell DTN Cotton Correspondent
Cotton futures traded lower Thursday, showing little reaction to a drop in U.S. weekly export sales and shipments.
Spot July hovered off 55 points at 87.13 cents at 8:11 a.m. CDT, trading within a 119-point range from 87.80 to 86.61 cents on a contract volume of 3,178 lots. It traded inside the prior day’s broad span.
December slipped 27 points to 86.50 cents, trading within a 105-point range from 87 to 85.95 cents on a turnover of 1,378 lots.
In outside markets, Dow Jones futures traded little changed at down 2 points and S&P futures eased 0.50, while dollar index futures gained 0.109 to 82.060, crude oil fell 53 cents to $96.09, Brent crude dropped 53 cents to $103.81 and gold lost $9.90 to $1,463.80. Corn traded mostly lower, soybeans higher, Chicago wheat lower and Kansas City wheat mixed.
Net upland export sales fell to 117,300 running bales during the week ended May 2 for shipment this season, down 63% from the previous week and 49% from the prior four-week average, USDA reported. Gross sales were 124,400 bales and cancellations were 7,100 bales.
China was the top buyer, booking 52,400 bales or 45%, followed by Vietnam, 34,700; Turkey, 9,400; Taiwan, 5,500; and Japan, 3,500. With Pima sales slipping to 1,300 bales from 9,600 bales, all-cotton sales dropped to 118,600 bales from a combined 324,000 bales the prior week.
Upland shipments slid to 277,100 bales, down 24% from the prior week and 19% from the previous four-week average. Pima shipments rose to 20,600 bales from 14,900 bales the week before to hike all-cotton exports to 297,700 bales, down from 379,700 bales.
New-crop sales of eased to 84,000 bales from 87,600 bales of all cotton the prior week. This brought sales for both marketing years to 202,600 bales, down from the prior week’s 411,600 bales.
China’s Zhengzhou cotton futures settled higher in nearby contracts, up 245 yuan or 1.15% in May, 80 yuan or 0.41% in July and up 35 yuan or 0.18% in most-active September. The other contracts closed between up 30 and down 30 yuan.
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