Futures were initially called to open unchanged this morning similar to yesterday. There was less overnight export activity today following Tuesday's flurry of foreign growth activity, and upon opening unchanged, the market soon slumped lower on an overall lack of activity.
Spread trading was about the only thing trading though as volume was near non-existent.
The Dec / March spread managed to widen out though to the 350 area. As floor traders and commercials settled into cross words and Sudoku puzzles in the mid session, attention diverted to outside markets which included seeing some strength returning to the energy complex as well as seeing an extremely volatile Chicago grains pit.
Word from our friends in Chicago was that more than one clearing house was liquidated today, unable to finance the burdens of a heavy commercial position in CBOT wheat which has risen near 100 cents in the last 2-3 weeks. Back in Cotton, things were far less exciting.
Local abandonment of any longs as well as some late spec selling into the close saw prices close back on the lows with active month losses of between 34 and 47 points. Estimated volume was light at just 7,000 lots.
This morning's US export sales and shipments were fairly impressive, with combined upland and Pima sales of 274,200 running bales.
The main buyers were Turkey with 66,000 bales, China with 52,400 bales and Indonesia with 58,600 bales. Combined shipments were as expected at 106,100 running bales.
marketing@alchempro.com
