By admin       2018-04-03

May posted three-session high. Trend-following funds reduced net longs for second straight week, this time by 2,080 lots. Cash online sales increased to 6,345 bales on The Seam. Cotton futures ticked higher in early dealings Monday coming out of a long holiday weekend, with spot May trading to a three-session high. May hovered up 84 points to 82.30 cents, trading within a 116-point range from 81.55 to 82.71 cents on a contract volume of 2,956 lots. July added 77 points to 82.57 cents, trading within a 99-point range from 81.89 to 82.88 on a turnover of 1,158 lots. December edged up nine points to 77.82, confined to a 25-point range from 77.70 to 77.95 on 653 lots. Meanwhile, trend-following funds sold a net 2,080 lots in ICE cotton futures-options combined during the week ended March 27, liquidating 2,830 longs and covering 750 shorts to reduce their net longs to 79,748 lots, according to supplemental traders-commitments data reported by the Commodity Futures Trading Commission on Friday. This was the second straight week in which they reduced their net longs and was in a period in which May traded from 83.86 to 81.39 cents. Index funds nudged their net longs up 112 lots to 80,119, while non-reportable traders raised theirs 1,423 lots to 7,006. Commercials bought a net 545 lots, adding 4,165 longs along with 3,620 shorts to shave their net shorts to 166,873 lots. Open interest increased 5,008 lots to 345,597. The net short position of commercials represented 192.4% of the combined net long position (86,754 lots) of trend-following funds and non-reportable traders, compared with 189.6% on March 6. In the market Thursday, May closed higher on the day but lost ground for the third week in a row, though by only 37 points. It settled back above its 50-day moving average after finishing back below it the prior day. The May-July spread traded between 43 and 25 points carry and narrowed 10 points to settle at a 34-point July premium on a volume of 5,996 lots. Inverted July-December traded between 387 and 480 points and narrowed 12 points to close at a 407-point July premium on 2,582 lots. December-March’s settlement difference narrowed 15 points to nine points carry. In cash online trading, sales increased to 6,345 bales from 1,005 bales on The Seam. Prices climbed to an average of 72.88 cents from 63.06 cents, reflecting gains to 22.97 cents from 16.48 cents in premiums over loan rates. Offerings were 102,961 bales. World values as measured by the Cotlook A Index fell 135 points to 89.95 cents, narrowing the premium over the prior-day May futures settlement seven points to 9.21 cents. In outside markets, U.S. dollar index futures traded down 0.280 to 89.530, while Dow Jones Futures ticked down 112 points and S&P futures 8 points on the first trading day of a new quarter as China’s decision to raise import tariffs rekindled global trade war fears. May corn was up 0.77%, May soybeans up 0.86% and July Kansas City wheat up 1.65%. Asian stocks closed lower, reversing earlier gains, down 0.31% in Japan’s Nikkei 225, up 0.24% 0.07% in South Korea’s Kospi and down 0.16% in China’s Shanghai Composite. The Hong Kong market was closed. India’s Sensex was up 0.87%. Most of Europe mar remained on holiday for Easter Monday. China’s Zhengzhou cotton futures ended mostly with gains and prices finished higher on the China National Cotton Exchange. State reserve auction base prices continued to fall

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