Archive by tag: materialsReturn

Cotton Prices Stable, Demand Increases

Cotton trading turned a bit puny all week as the May futures contract moved closer to expiry and the July contract prepared to become the spot month.   Open interest in the May contract has quietly dissipated.  Thus, any expected fireworks on the May contract have been all but abated and the expiry will be silent.  Delivery notices can be issued at the conclusion of trading on Monday, April 23.   However, the July contract remains supported by the bullish on-call sa...
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Growing Demand Moves Cotton Prices Above 78 cts

Cotton posted gains on the week as the old crop May and July futures contracts traded within the 82.5-84.5 cent range and closed above 83 cents.   May was impressive as it moved through the fund long roll positions (sell May/buy July) and posted gains despite the selling pressure created by rolling positions to the July contract.  In fact, the May contract is suggesting that the market is facing a price inversion (the nearby contract is higher than the next contract).  Mill d...
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After A Volitile Week, Cotton Prices Remain High

Cotton prices fought the battle with volatility all week, but settled higher as both the old crop May and July contracts settled above 82 cents.  The new crop December contract traded above 78 cents, but settled the week at 77.94 cents. Fundamentals remained much the same as the prior two months, very strong export sales and even stronger shipments, coupled with active on-call sales. Yet, on-call sales across all futures contracts declined during the week due to heavy fixations on the May c...
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Q1 Ends with Higher Cotton Prices

Cotton trading continues mixed, but all contracts settled higher he end of the first quarter of the year.  Earlier the nearby May and July contracts slipped below 81 cents, but finished the week challenging the 82 cent mark.  The new crop December contract clawed its way back to just below 78 cents and the week’s fundamental news purports to push the December futures contact above 78 cents, the price level we had advised to growers to begin their pricing. USDA’s annual pros...
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Cotton Prices Still Rising, Despite Increased Planting

Plant…Plant…Plant continues to be the motto, but it is also time to add Price…Price…Price to the discussion.   The new crop December contract took a hit this week, but settled at week’s end above the trend line, thus keeping the uptrend in force.  The market faced an uphill battle all week, and actually lost some momentum, but came back at the end of the weekly trading period to post a close above the December trend line.  Thus, while the bul...
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