By admin       2018-05-23

Spot July hit a new contract high overnight. U.S. cotton planting advanced 16 percentage points to 52% completed. Grower sales of 4,999 bales brought an average of 66.38 cents per pound on The Seam. Cotton futures traded on slight gains in early dealings Tuesday after hitting a new contract high overnight in spot July. July held onto a 22-point gain to 88.64 cents, around the lower third of its 186-point trading range from 89.88 cents to 88.02 cents on a contract volume of 4,544 lots. December gained 35 points to 84.51 cents, in the upper third still within its 82-point overnight range from 83.93 cents to 84.75 cents on a turnover of 3,376 lots. On the crop scene, U.S. cotton planting advanced 16 percentage points to 52% completed during the week ended Sunday, up three points from a year ago and seven points from the five-year average, USDA’s progress report showed after the close Monday. Progress in Texas moved at a 15-point clip to 43% planted, compared with 28% a week earlier, 39% last year and 33% on average. Eight percent was squaring, even with last year but behind the five-year average of 5%. Cotton planting continued on the High Plains and was irrigated in the Upper Coast, South Texas and the Lower Rio Grande Valley. Wireworms became a concern in early emerged cotton in the southern High Plains. Weather was mostly dry and warm through early-week and late-week thunderstorms brought much-needed rainfall. Most of the state got between 0.2 of an inch and 1.5 inches. Areas of South Central Texas, Edwards Plateau, Cross Timbers, Upper Coast and Rolling Plains averaged between 2 and 3 inches, with isolated areas getting upwards of 5 inches. The Trans-Pecos received little to no rain. Planting in Georgia was 56% done, up 15% points on the week and four points ahead of average. Elsewhere in the Southeast, progress reached 67% completed in Alabama, also up four points from average, but lagged 10 points behind average at 51% planted in North Carolina, 12 points at 48% planted in South Carolina and five points at 59% in Virginia. In the Delta, cotton was 91% planted in Arkansas, 12 points ahead of average; 88% in Louisiana and 70% in Mississippi, both up seven points; 94% in Missouri, up 21 points; and 75% in Tennessee, up 23 points. Growers in the Far West had planted 92% in Arizona and 100% in California, two points behind and 12 points ahead of the five-year averages, respectively. In ICE cotton futures Monday, July and December both hit new contract highs and settled on new contract high closes on an easing of U.S.-China trade tensions. July settled on the highest spot futures close since June 19, 2014. The inverted July-December straddle traded between 341 and 439 points and widened 14 points to settle at a 426-point July premium on a volume of 7,139 lots. December-March traded between an inverted three and 34 points and narrowed eight points to close at an 11-point December premium on 3,155 lots. Cash online grower-to-business sales of 4,999 bales brought an average of 66.38 cents per pound on The Seam and business-to-business sales of 2,167 bales sold for an average of 74.98 cents a pound. Staples 35 and longer made up 3,976 bales or 80% of the G2B sales and 1,786 bales or 82% of the B2B sales. All the cotton was from the Southwest. Offerings were 50,241 bales. The Cotlook A Index of world values gained 120 points to 94.45 cents, narrowing the premium over the prior-day July futures settlement 32 points to 7.90 cents. A narrowing suggests a loss of U.S. cotton price competitiveness. In outside markets, Dow Jones Industrial Average futures ticked up 50 points and S&P futures up 4.50 points amid signs of further progress in trade talks between the United States and China. U.S. dollar index futures dropped 0.190 to 93.367 against a basket of currencies. July West Texas Intermediate crude oil traded up 26 cents to 72.61 and July Brent crude added 61 cents to $79.83. June gold rose by $4.30 to $1,295.20. July corn was up 0.81%, July soybeans up 0.54% and July Kansas City wheat up 2.37%. Asian stocks closed mixed, down 0.18% in Japan’s Nikkei 225, up 0.6% in Hong Kong’s Hang Seng, up 0.2% in South Korea’s Kospi and up 0.2% in China’s Shanghai Composite. India’s Sensex gained 0.1%. European shares rose, with Britain’s FTSE 100 up 0.16%, Germany’s DAX up 0.55% and France’s CAC 40 up 0.11%. China’s Zhengzhou settled with additional gains and prices ended with large gains on the China National Cotton Exchange.

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