Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

PCCA Plains Cotton Cooperative Association : Cotton Market Weekly

04/11/2014 | 03:08pm US/Eastern
Recommend:
0
April 10, 2014

A combination of factors seemed to pressure nearby cotton futures contracts at the Intercontinental Exchange (ICE) most of this week. Index funds rolling their positions from May to July, a negative export sales report, and weaker outside markets were mentioned by cotton market analysts.

From Monday through Thursday's ICE session, the May contract lost a combined 338 points, and July lost 238 points. The best day for both contracts was Tuesday when a weaker dollar and stronger outside markets may have been the catalysts that enabled May to settle 117 points higher and July to settle 124 points higher at the close of trading. Conversely, December cotton enjoyed a mostly good week, the exception being Monday's ICE session.

The December contract settled 8 points lower that day at 79.84 cents per pound following weekend news from China regarding its new price support program for cotton farmers. One market analyst calculated the guaranteed price for farmers there to be the equivalent of $1.45 per pound which may lead to more cotton acres this year.

Tuesday was the beginning of a three-day run for December on positive ground. The contract settled 33 points higher at 80.17 cents following an inside trading session. The uptrend continued Wednesday as December gained another 24 points to settle at 80.41 cents, it highest level since Oct. 17, 2013. May, July and October futures contracts pulled back sharply following the release of USDA's monthly supply and demand estimates.

The department reduced its estimate of 2013-14 U.S. cotton production to 12.87 million bales, down 320,000 from the previous month. Likewise, estimated ending stocks were lowered 300,000 bales to 2.5 million which would be the smallest stocks level since 1951, according to one market observer. Estimates for domestic consumption and exports were unchanged.

On the world balance sheet, USDA lowered its estimate of world cotton production by 60,000 bales and raised consumption 240,000 bales. However, the department raised its estimate of beginning stocks for this marketing year by 490,000 bales, resulting in an increase in ending stocks to 96.92 million bales.

At the close of trading Thursday at ICE, December cotton was 43 points higher at 80.84 cents per pound after briefly dipping below 80 cents. The contract seemed to be unfazed by the season's first negative export sales report from USDA.

Net export sales of U.S. upland cotton for the 2013-14 marketing year were reduced 10,900 bales in the week ended April 3, according to USDA, following cancellation of 68,700 bales from previous sales, primarily to Thailand and Mexico. It was the first negative report in almost two years, according to one analyst. However, net sales for 2014-15 totaled 119,300 bales, and Turkey was the featured buyer. Export shipments for the week were robust at 303,900 bales, up 23 percent from the previous week and 11 percent from the four-week average. Turkey, China and Vietnam were the primary destinations.

Meanwhile, traders and analysts are referencing with greater frequency the continuing drought in West Texas where conditions are rated extreme to exceptional across much of the region. Mostly sunny and breezy conditions are forecast through the weekend. Conditions in other parts of the U.S. Cotton Belt are much different as frequent rainfall has been reported in the Delta and Southeast growing regions.

distributed by
Recommend :
0
React to this article
Latest news
Date Title
<1m ago HAPPY CREEK MINERALS : Expands Tungsten Zones at Surface on the Fox Property, B.C.
<1m ago STARWOOD HOTELS & RESORTS WORLDWIDE : Bassett Tower in downtown El Paso to become hotel
1m ago OCEANUS RESOURCES : IIROC Trading Halt - OCN
1m ago Boreal Water Collection Lands Large Distribution Agreement with COFCO, the Largest Products Supplier and Services in China and Receives the First Order for 10 Containers of Boreal Baby Water
1m ago FISH & RICHARDSON : Announces 42 Attorneys Included in The Best Lawyers in America® 2015
1m ago Wall St opens flat ahead of Fed statement
1m ago ALLIANZ SE : Women in leadership at Allianz
1m ago ALLIANZ SE : repositions its commercial P&C business in the United States
1m ago ALLIANZ SE : How Starbucks keeps innovating
1m ago GENERAL MILLS : reports fiscal 2015 first-quarter results
Latest news
Advertisement
Hot News 
CENKOS SECURITIES : Shares Rise As It Evaluates Share Buy-Backs After Profit Jump
ULTRASONIC : Germany-listed Ultrasonic says top China executives missing, cash gone
GLIMCHER REALTY : Law Firm Kirby McInerney LLP Investigating Potential Claims on Behalf of Glimcher Realty Trust Stockholders
BROOKS MACDONALD : Final Results
WASHINGTON PRIME : GLIMCHER INVESTOR ALERT BY THE FORMER ATTORNEY GENERAL OF LOUISIANA: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Glimcher Realty Trust
Most Read News
1d ago ADOBE SYSTEMS : revenue forecast misses, shares slip
1d ago BARCLAYS : N.Y. says Barclays move to toss fraud case should be denied
1d ago RAYTHEON : House Ways and Means Committee - Hearing
1d ago DELTA AIR LINES : announces Los Angeles-San Antonio nonstop flights, starting in April
9h ago AIRBUS : Qatar Airways takes delivery of its first Airbus A380
Most recommended articles
1m ago Wall St opens flat ahead of Fed statement
3m ago Pretium sees no delay to Canada gold project from mine spill
4m ago French welfare fraud costs 20-25 billion euros per year - report
6m ago ALLIANZ SE : revamps U.S. business, eyes Fireman's Fund options
7m ago U.S. TIPS breakeven rates fall after CPI declines
Dynamic quotes  
ON
| OFF