Archive for May, 2016

The July contract surged today as it gained 143 points post the release of respectable export data and ahead of the Rogers roll, settling at 64.33. The settlement was within the upper one quarter of the trading range. Evidently, we were incorrect about positive export news being priced into the market ahead of today’s trading action. Mill fixations were most likely responsible for a large portion of today’s upward movement. The Dec contract gained 140 points, settling at 63.94, the net effect leaving the July – Dec spread strengthened at 39. Volume quickened for July delivery at just above 25K contracts while July OI was near unchanged at approximately 96.8K contracts.

For tomorrow…

The July contract gave up 11 points ahead of the weekly US cotton export report, settling at 62.90. The settlement was within the upper one half of the trading range. The Dec contract gained 9 points, settling at 62.54, the net effect leaving the July – Dec spread weakened 36. Volume slowed for July delivery at just above 13K contracts while July OI contracted at approximately 96.8K contracts.

For tomorrow…