Mumbai, 19 Apr (Commoditiescontrol): ICE cotton futures extended fall on Thursday, declining to a four-month low, pressured by liquidation from speculators, while a stronger dollar and downbeat sentiment in oil and broader markets also weighed on the natural fiber.
The dollar index was up 0.1% near a one-month high, making cotton more expensive for overseas buyers.
Oil prices drifted lower, with the market downplaying the risk of a broader regional conflagration after Iran's weekend attack on Israel. Lower oil prices make polyester - a cotton substitute - less expensive.
ICE Cotton contracts for May closed at 78.1 cents, 146 points lower. Jul settled at 80.61 cents, losing 72 points. Dec ended 113 point weak at 77.41 cents. The death spiral liquidation continues for May as longs get out before deliveries, with rest of the contracts following along.
Thursday afternoon’s Cotton on-Call report showed 6,900 contracts of unfixed call sales for May, down 3,672 on the week. July was up 5,426 contracts to 28,421 contracts. Overall, on the week unfixed call sales were up 2,828 contracts to 70,843 contracts. The unfixed call purchases are large for December at 40,708 contracts.
The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 146,100 running bales for 2023/2024, up 79% from the previous week and 64% from the prior four-week average. The report also showed exports of 266,700 running bales, down 3% from the previous week and 24% from the prior four-week average.
Cotton planting across the US has now been reported at 8% complete according to NASS, even with the average pace in the last 5 years. That was also 1% ahead of last year. Cotton planting in the two major cotton growing states is off to a slightly slower start, with Texas at 13% complete and Georgia 1% planted, both 1% back of normal, despite the national level on par with average.
The U.S. Department of Agriculture's (USDA) weekly export sales report showed net sales of 81,500 running bales for 2023/2024, down 4% from the previous week, and 10% from the prior 4-week average.
According to the World Agricultural Supply and Demand Estimates (WASDE) report on Thursday, world trade for 2023/24 was projected 700,000 bales higher this month to nearly 44 million.
USDA left the US cotton balance sheet alone this month, as they wait for final production data next month. Stocks are still at 2.5 million bales, though the US average farm price was trimmed by a penny to 76 cents. The World cotton S&D table was a 0.26 million bale cut to stocks at 83.08 million bales, mainly on tighter carryover from the previous crop year.
World trade for 2023/24 was projected 700,000 bales higher this month to nearly 44 million, as a 1.3-million-bale increase in China's imports was partially offset by reductions for Pakistan and Indonesia, as per the report.
Global ending stocks for 2023/24 were projected down nearly 300,000 bales in April as lower stocks across West Africa, Australia and Brazil more than offset higher supplies in China, the report added.
ICE certified cotton stocks were up another 1,032 bales on April 17 at 172,732 bales. The Cotlook A Index was back down 65 points to 88.95 cents/lb on April 16. The AWP dropped another 325 points to 62.18 today and is good through next Thursday.
Cotton spec traders were shown 3,900 contracts less net long for the week after a bout of long liquidation. The CoT report had the group 80,600 contracts net long as of the settle. Commercial cotton traders were adding new hedges, though the shorts offset the new longs for a 4,000 contract swing to 127,600 contracts net short as of April 2.
For Friday, support for the Jul Cotton contract is at 79.58 cents and 78.54 cents, with resistance at 81.77 cents and 82.92 cents.
(By Commoditiescontrol Bureau: 09820130172)
0 Comments 
Post Comment 
