DTN Morning Cotton Commentary 05/24 07:43

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DTN Morning Cotton Commentary 05/24 07:43

DTN Morning Cotton Commentary          05/24 07:43

   Cotton Trades Modestly Lower 

   Spot July extends losses after four consecutive days of closing losses. Cash 
business sales totaled 1,755 bales on The Seam and grower sales resumed on 
sales of 198 bales.

By Duane Howell
DTN Cotton Correspondent

   Cotton futures traded modestly lower in early dealings Friday ahead of a 
holiday weekend, extending losses after closing lower four consecutive days, 
basis spot July.

   July hovered off 36 points to 81.42 cents at 7:15 a.m. CDT, trading within a 
98-point range from 82.38 to 81.40 cents on a contract volume of 2,920 lots.

   December fell 48 points to 83.16 cents, the low of its 64-point range from 
its session high of 83.80 cents on a turnover of 1,057 lots.

   The market will be closed Monday in observance of Memorial Day.  Trading 
will resume at the regular time Monday night.

   In outside markets, Dow Jones futures traded down 34 points and S&P futures 
down 6.75 points, while dollar index futures dipped 0.083 to 83.720, crude oil 
fell 61 cents to $93.64, Brent crude dropped 25 cents to $102.19 and gold 
traded about flat at $1,391.60, off 20 cents.  Nearby contracts were lower in 
corn and soybean and higher in wheat.

   China's Zhengzhou cotton futures settled mixed on light volume, with July 
and most-active September finishing unchanged.

   In U.S. futures Thursday, July closed at its lowest finish since Jan. 28 as 
hedge funds who had built their net longs to the largest since April 9 
continued to exit.

   The July-December spread traded between premiums on December of 205 and 76 
points and widened 89 points to settle at 186 points on a volume of 4,585 lots, 
while December-March traded between premiums on December of 25 and 44 points 
and narrowed a point to close at 29 points on a volume of 272 lots.

   In cash trading, business-to-business sales increased to 1,755 bales from 
264 bales the previous session.  Prices fell to an average of 71.28 cents from 
74.13 cents, reflecting a drop to 26.01 cents from 28.07 cents in premiums over 
loan redemption rates.

   After two days of inactivity, grower-to-business sales resumed as 198 bales 
changed hands on prices averaging 76 cents and premiums of 25.67 cents.

   The business sales included 641 bales of staples 35 or more and 1,114 bales 
of staples 34 or less, while the grower sales included 190 and 8 bales, 
respectively.  All the sales on both exchanges were from the Southwest.   


(BAS)

Copyright 2013 DTN/The Progressive Farmer. All rights reserved.

Posted: 5/24/2013 11:15am

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