MUMBAI(Commoditiescontrol)- US cotton on ICE futures surged with May contract posting new contract high on Thursday on a moderate export sales report.
The May cotton contract settled up 2.4 cent, or 3 percent at 80.07 cents/lb. The contract trade within a 300-point range touching a new contract high, last witnessed in June 2014, at 80.67 cents recovering sharply from an intraday low at 77.67 cents in early trade.
The market ignored the moderate export sales report and instead focused on mills fixation which surged prices ahead of the first notice day period beginning from April 24.
Meanwhile, the July cotton contract on ICE Futures U.S settled up 0.79 cent, or 1.01 percent, at 79.11 cents/lb on Thursday. The traded within 106-point range hitting an intraday low at 78.33 cents in early trade however quickly recovered to a positive trajectory marking an intraday high at 79.39 cents, registering more than a month high.
Total market volume decreased to 32,125 lots from 36,008 lots.
As of April 18, Futures open interest declined 2,499 lots Tuesday to 239,278, with May’s down 13,256 lots to 11,089, July’s up 9,185 lots to 125,997 and December’s up 1,198 lots to 90,182.
U.S. weekly export sales slowed about as generally expected and still were considered constructive. Shipments also slowed but remained well ahead of the pace needed to reach the USDA forecast.
The USDA, in its weekly export sales report released on April 13 pegged export sales at 237,000 Running Bales (RB) in the week Apr 7-13, 2017. It decreased 25 percent from previous week's 316,900 RB. (Full Report)
Certified stocks grew 3,082 lots to 301,768 where around 4,662 lots were newly certified bales and 1,580 bales decertified.
(By Commoditiescontrol Bureau; +91-22-40015534)