By admin       2018-03-23

May cotton closed down 0.44 cent Thursday, pulling back a second day as outside concerns of a falling stock market and trade issues with China countered bullish concerns of adverse weather. Extreme drought in northern Texas remains a concern for 2018 production. May cotton prices pulled back a second day on Thursday, closing down 0.44 cent at 82.15 cents on light volume. The market is dealing with ongoing concerns of extreme drought in northern Texas and too much rain around the Mississippi Delta, while southern Georgia remains on the dry side. Thursday’s seven-day forecast only adds fuel to those concerns, with warmer temperatures quickly evaporating any light precipitation on the way to northern Texas, while more heavy rains are headed to the Mississippi Delta. U.S. cotton export sales are doing well in 2017-18, provided they are shipped before Aug. 1. USDA’s next weekly report will be released Friday morning, due to this week’s winter storm in the eastern U.S. Technically speaking, May cotton remains in an uptrend with overwhelming support from noncommercial buyers, seen as 90% long in the CFTC’s most recent report for Mar. 13. That degree of bullishness among speculators remains a bearish concern, should May prices fall below support at 76.44 cents. The ICE daily stocks report showed certified stocks down 6,543 on Wednesday at 62,624. In cash online trading, The Seam showed 8,436 bales sold Wednesday at an average price of 66.28 cents. Average loan value was 45.90 cents and 91,970 bales were offered. The Cotlook A Index of world values for Wednesday, Mar. 21 was up 1.70 cents to 92.45 cents, putting the premium over the May futures settlement at 9.86 cents

Download App

# #

Member Login