By admin       2018-07-03

DTN Cotton Open: Starts A Little HigherWeekend thunderstorms brought up to an inch or more at some Texas High Plains sites. Hedge funds reduced their net longs to the smallest since April 24. Cash online grower sales of 193 bales brought 55.53 cents per pound on The Seam. On the weather scene, a broken line of thunderstorms moved eastward across the Texas High Plains Sunday night. West Texas Mesonet sites reporting cumulative amounts of an inch or more before midnight included Amherst, 1.15 inches; Muleshoe, 1.29; New Home, 1.03; and Slaton, 1.18. Amounts in other cotton areas were generally less than half an inch. Meanwhile, trend-following funds reduced their net longs 5,975 lots to 87,069 in cotton futures-options combined during the week ended Tuesday, the third straight weekly reduction to the smallest since April 24, according to traders–commitments data reported after the close Friday. They liquidated 7,273 longs and covered 1,298 longs, the Commodity Futures Trading Commission report showed. Index funds sold a net 1,582 lots to cut their net longs to 81,016 lots, while non-reportable traders sold a net 32 lots to ease theirs down to 6,895 lots. Commercials bought a net 7,535 lots, covering 9,326 shorts and liquidating 1,791 longs to lower their net shorts to 144,980 lots. Open interest declined 14,038 lots to 341,735. In the ICE cotton futures Friday, December bounced off the lowest close the prior session since May 18 (corrected), finishing up 37 points for the day but losing 138 points for the week. This was its third losing week in a row for a total of 868 points. December posted the week’s high on Monday and the low on Friday, holding above the prior week’s June intraday low 82.94). The inverted December-March spread traded between 19 and 48 points and narrowed 14 points to close at a 26-point December premium on a volume of 2,452 lots. Maturing July widened its settlement premium over December eight points to 146 points on 12 lots. In cash online trading, slowed sales of 193 bales on the grower-to-business exchange and 921 bales on the business-to-business platform brought averages of 55.53 cents and 71.82 cents per pound, respectively, on The Seam. Staples 35 or more accounted for 176 bales or 91% of the G2B sales and all but four bales of the B2B sales. All the grower sales were from the Southwest. The business sales included four bales from the Southeast, all of which stapled 35 or more and brought 79.50 cents a pound, and the remainder from the Southwest that sold for 71.78 cents per pound. The Cotlook A Index dropped 95 points to 93.25 cents, narrowing the premium over the prior-day July futures settlement 13 points to 8.32 cents. The index was down 35 points from a week earlier.

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