DTN Cotton Open: Ticks Modestly Higher

    Uneven cotton emergence. Photo: Texas AgriLife Extension

    U.S. cotton planting edged up to 12% completed, behind 14% last year and the five-year average. Progress reported ahead of the average in only two states. Cash online sales increased to 4,982 bales, of which 2,163 bales were grower sales.

    Cotton futures traded modestly higher on this first day of May, with most-active July having touched the session low in overnight dealings.

    July hovered up 43 points to 84.27 cents, trading within a 70-point range from 83.61 to 84.31 cents on a contract volume of 2,192 lots. December edged up 15 points to 78.93 cents, trading within a 38-point range between 78.55 and 78.93 cents on a turnover of 338 lots. Maturing May traded last up four ticks at 84.72 cents.

    No new May delivery notices were issued Tuesday, leaving the total at 189. The last trading day for May is next Tuesday. May had an open interest of 105 lots coming into Monday’s session.

    On the weather scene, a meager 0.17 of an inch at Floydada was the most rainfall recorded by the West Texas Mesonet at a few spots in cotton areas Monday evening and night on the Texas High Plains.

    On the crop scene, U.S. cotton planting edged up two percentage points to 12% completed during the week ended Sunday, behind 14% last year and the five-year average, USDA reported after the close Monday.

    Progress in Texas inched up a point to 15%, up from 13% last year and the average. Hot, dry and windy conditions persisted across most of the state. Rainfall in the Low Plains, Cross Timbers, Trans-Pecos, Edwards Plateau, South Texas and South Central Texas ranged from trace amounts to 1.5 inches, with isolated areas getting upwards of 2.5 inches. However, high winds and warm temperatures continued to deplete soil moisture.

    The only other state where progress was ahead of the five-year average was Georgia with 10% planted, up two points. Except for Virginia, where 5% planted was even with the average, progress in other states in the Southeast lagged three to 13 points behind. In the Southwest, Oklahoma at 6% planted also was even with its average. Progress lagged in the other 11 reporting states.

    In cotton futures Monday, July settled on a moderate loss, pressured on light volume by strength in the U.S. dollar index.

    The inverted July-December straddle traded between 477 and 547 lots and narrowed 18 points to settle at a 506-point July premium on 2,399 lots. December-March traded between an inverted 12 and 34 points and narrowed 10 points to a 17-point December premium on 592 lots.

    In cash online trading, sales increased to 4,982 bales from 4,565 bales on The Seam. Prices averaged 66.63 cents, down from 66.80 cents, reflecting gains to an average of 19.47 cents from 18.97 cents in premiums over loan rates. Offerings were 108,958 bales.

    Grower-to-business sales of 2,163 bales sold for an average of 61.77 cents per pound. Included were 2,109 bales from the Southwest and 54 bales from the Southeast that brought averages of 62.44 and 35.65 cents a pound, respectively.

    Business-to-business sales of 2,819 bales, all from the Southwest, changed hands at an average of 70.35 cents per pound. Staples 35 or more accounted for 90% of the B2B sales and 71% of the G2B sales.

    The Cotlook A Index of world values gained 25 points to 93.72 cents, narrowing the premium over the prior-day July futures settlement nine points to 9.29 cents.

    In outside markets, Dow Jones Industrial Average futures ticked down 31 points and S&P futures down 7.50 points, while U.S. dollar index futures gained 0.405 to 92.035 against a basket of major currencies.

    June West Texas Intermediate crude oil dropped 69 cents to $67.88 and Brent crude lost 72 cents to $73.97. June gold shed $10.40 to $1,308.80. July corn was up 0.37%, July soybeans down 0.29% and July Kansas City wheat down 0.65%.

    Stocks closed up 0.18% in Japan’s Nikkei 225 and traded up 0.45% in Britain’s FTSE 100. Most other major markets were closed for public holidays, including those in Hong Kong, Shanghai, Seoul and in Southeast Asia as well as in France and Germany.

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