NEW YORK: ICE cotton futures on Thursday rose to their highest in a week, tracking gains in Chicago grains, while concerns grew that harvest of the natural fiber crop could be delayed as forecasts pointed to inadequate rains in key regions. Cotton contracts for December rose 0.47 cent, or 0.5%, to 90.78 cents per lb, by 11:26 a.m. EDT (1526 GMT), extending its winning streak to a fourth straight session.
While stable demand, some freight concerns and higher grains were helping, prices have found technical support around the 88-cent level, while also facing some resistance at 91 cents per lb, Bailey Thomen, cotton risk management associate at StoneX Group, said. * Chicago corn and soybeans edged higher while wheat eased from early gains as the market assessed mixed US crop conditions, a lull in Chinese imports and the risk a fast-spreading coronavirus variant will dampen demand.
“The crop is definitely behind in a lot of areas. It is anywhere from about one to two weeks behind its usual pace, and so that is going to be something that could be a major concern down the road,” Thomen said.
The US Department of Agriculture’s weekly export sales report showed net sales of 149,300 running bales (RB) for the 2021/2022 marketing year and exports of 229,500 RB, down 4% from the previous week and 5% from the prior 4-week average. * The report also showed net sales of 17,100 RB for the last week of the 2020/2021 marketing year.
“Domestically, the US crop is (overall) later than average, so the crop will need rain through August and much of September. And at this time, there is little rain forecast for ‘The Belt’ over the near- to medium-term,” Louis Rose, director of research and analytics at Tennessee-based Rose Commodity Group, said in a note.
Comments
Comments are closed.