The Mar contract picked up 65 points today on strong US export sales data, settling at 63.93 – a 110 point gain on the week. The settlement was within the upper one quarter of today’s trading range. The May contract gained 60 points, settling at 64.56, the net effect leaving the Mar – May spread strengthened at (63). Volume slowed in the Mar contract at approximately 15.7K contracts while Mar OI contracted expanded at approximately 130K contracts.
For Mon…
Following a difficult planting and growing season and amid horrid late harvest conditions, US producers have struggled to be thankful as the holiday season commences. That said, ICE Mar cotton futures gained 110 points this week, settling at 63.93 on unusually strong holiday volume. The Dec 16 contract picked up 49 points this week, finishing at 64.78.
For next week…
Total net export sales for the week ending Nov 19 were approximately 38% higher vs the previous week (and higher than our expectations) at 275.1K running bales, which again significantly exceeds the weekly pace required in order to meet the USDA’s 10.2M bale export target. Total shipments were higher vs the previous week, but disappointing at just below 100K running bales. Sales cancelations were reported at nearly 24K running bales. Total commitments against the new marketing year are now 45% of the USDA’s export projection and new crop sales will need to average approximately 153K running bales per week in order to meet the target.
Today’s data confirms that export business continued to be accomplished in the 62.00 – 63.00 range, basis Mar. Overall, we view today’s sales data as supportive to bullish.
The Mar contract picked up 134 points today ahead of the US Thanksgiving holiday and the weekly US cotton export report, settling at 63.28. The settlement was within the upper one quarter of today’s trading range, which was nearly completely north of yesterday’s settlement. The May contract gained 119 points, settling at 63.96, the net effect leaving the Mar – May spread strengthened at (68).
For Fri…
