The ICE Dec contract picked up 62 points today, post the release of better than expected export sales, settling at 72.97. The Mar contract gained 72 points at 73.52, the net effect leaving the Dec – Mar spread weakened at (55). Volume for Dec delivery slowed slightly at just below 17K lots while Dec OI contracted at just below 180K contracts.
For tomorrow…
Total net export sales (2015/16 and 2016/17 combined) for the week ending July 14 were a pleasant surprise at nearly 270K running bales. Shipments were higher Vs the previous period, but still below the weekly pace required for the US to ship 9.2M bales by July 31. Sales cancelations were moderate at around 9K running bales of upland cotton.
Today’s data is, we think, is supportive. Continued hot and dry conditions across most US producing regions, especially W TX, weaker US currency Vs yesterday and generally supportive grain markets (this far) based on relatively friendly export reports should help cotton move higher today. We will be buyers today at 72.00 – 72.50.
The Dec contract gave up 33 points on Mon, settling at 73.95. The Mar contract lost 24 points, also at 73.95, the net effect leaving the Dec – Mar spread weakened at flat. Volume for Dec delivery was near unchanged at just below 24K lots; Dec OI was also near unchanged at around 182K contracts.
For today…
It was a most excellent week for cotton producers and cotton market bulls. The ICE Dec contract surged, advancing 847 points on the week as the recent slight carry in the market gave way to backwardation.
For this week…
The Dec contract continued its trek northward on Fri, picking up another 41 points and settling at 74.28 – a surrealistic 847 point weekly gain. The Mar contract gained 65 points at 74.19, the net effect leaving the Dec – Mar spread weakened at 9. Volume for Dec delivery slowed slightly at just below 24K lots while Dec OI was near unchanged at nearly 182K contracts.
For Mon…
