May cotton futures picked up 58 points in volatile trading action post the release of the USDA’s annual planting intentions report, settling at 63.10. The settlement was within the upper one half of today’s trading range. July picked up 46 points to settle at 63.48, the net effect leaving the May – July spread strengthened at (36). Dec gained 56 points, settling at 64.34.
For tomorrow…
The following results were put forth on the USDA’s annual Planting Intentions report:
Corn Planted Acreage Down 2 Percent from 2014
Soybean Acreage Up 1 Percent
All Wheat Acreage Down 3 Percent
All Cotton Acreage Down 13 Percent
Cotton area was projected at 9.5M acres (9.4M upland). This figure is just above the National Cotton Council’s projection and below the USDA’s initial projection of 9.7M total acres. The results were on par with pre-report expectations and should be neutral, although the market is trading just above levels where considerable physical business has been recently accomplished. Further downside may be limited over the near-term.
May cotton futures gave up 103 points on the second day of the Rogers roll period and ahead of the USDA’s annual planting intentions report, settling at 62.52. The settlement was within the lower one quarter of today’s trading range. July gave up 87 points to settle at 63.00, the net effect leaving the May – July spread weakened at (48). Dec gave up 90 points, settling at 63.78.
For tomorrow…
