By admin       2018-04-06

U.S. weekly export sales quickened to 367,600 RB and shipments to 452,400 RB. U.S.-China trade fears eased. Cash online sales declined to 3,332 bales on The Seam, including 868 bales of grower sales. Cotton futures rebounded sharply in brisk early dealings Thursday, supported by U.S. weekly export sales and shipments. Spot May gained 156 points to 81.20 cents, trading within a 213-point range from 79.45 to 81.58 cents on a contract volume of 6,632 lots. July added 135 points to 81.07 cents, trading within a 178-point range from 79.60 to 81.38 cents on a turnover of 3,415 lots. December ticked up 83 points to 77.65 cents, trading within a 99-point range from 76.75 to 77.74 cents on 1,570 lots. Gains in U.S. stock index futures also lent support, building on a strong recovery the previous session as fears about a trade war between the United States and China cooled on signs that the two countries were open to negotiations on tariffs. Net upland export sales for shipment this season of 367,600 running bales during the week ended last Thursday quickened 21% from the previous week and 9% from the prior four-week average, USDA reported. Sales went to 18 countries, led by Vietnam, Pakistan, Indonesia, Turkey and Brazil. Gross sales were 395,900 RB and cancellations of 28,300 RB included commitment reductions primarily for Mexico and Japan. Net sales of 43,800 RB for next season, mainly for China and Thailand, were partially offset by reductions for Bangladesh and Mexico. Upland shipments of 452,400 RB increased 3% from the prior week but were unchanged from the four-week average, well ahead of the pace needed to reach the USDA estimate. Shipments went to 27 countries, headed by China, Pakistan, Indonesia, Turkey and Vietnam. Pima sales of 10,800 RB for this season jumped from 5,200 RB the prior week and 69% from the four-week average, while shipments of the extra-long staple cotton hit a marketing year high of 28,600 RB and were up 93% and 21%, respectively. Pima sales of 400 RB were reported for 2018-19. In ICE cotton futures Wednesday, May settled sharply lower, taking out a chart support point at 80.67 and finishing back below its declining 50-day moving average in the face of a huge turnaround from steep losses in U.S. equities after China announced plans for retaliatory tariffs. The new list included cotton. The May-July spread reverted to an eight-point carry close from a one-point inversion, trading 19 points May/over to 20-points July/over on a volume of 11,213 lots. Inverted July-December traded from 420 to 290 points and narrowed 111 points to settle at a 290-point July premium on 5,011 lots. December-March’s settlement difference widened 18 points to 45 points carry on 1,356 lots. Cash online sales declined to 3,332 bales from 10,717 bales on The Seam. Prices fell to an average of 64.88 cents from 73.89 cents, reflecting premiums over loan rates of 17.30 cents, down from 23.81 cents. Offerings were 96,194 bales. Grower-to-business sales of 868 bales brought an average of 54.76 cents per pound, while business-to-business sales sold for an average of 68.44 cents. Staples 35 or more accounted for 853 bales of the G2B sales and all but 10 bales of the B2B sales. All the sales were from the Southwest. The Cotlook A Index of world values gained 100 points to 91.20 cents, narrowing the premium over the prior-day May futures settlement five points to 9.18 cents. In outside markets, Dow Jones Industrial Average futures traded up 104 points and S&P futures up 15.25 points, while U.S. dollar index futures gained 0.265 to 90.050. May West Texas Intermediate crude oil ticked down a penny to $63.36 and June Brent crude edged up 2 cents to $698.04. May corn was up 0.72%, May soybeans up 0.64% and July Kansas City wheat up 1.91%. Asian stocks closed higher, with Japan’s Nikkei 225 surging 1.53% and South Korea’s Kospi 1.22%. Markets in Hong Kong and mainland China were closed for holidays. India’s Sensex gained 1.75%. European shares traded on sharp gains, up 1.55% in Britain’s FTSE 100, 2.18% in Germany’s DAX and 1.9% in France’s CAC 40.

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